Back to previous section

Sell-off at Inchcape 'hard to justify', says Citi

Last week's sell-off in Inchcape's shares was overdone, according to analysts at Citi, which retained a 'buy' rating on the stock.

  • Inchcape
  • 27 January 2025 09:35:10
Inchcape

Source: Sharecast

Inchcape tumbled on Thursday after JPMorgan Cazenove downgraded the car dealership to ‘neutral’ from ‘overweight’ and slashed the price target to 800p from 1,050p, saying investors should "prepare for increased volatility ahead".

The stock. which was trading around the 750p level at the start of last week, closed Friday's session at 644.5p – its lowest finish since March 2024.

However, according to Arthus Truslove from Citi, the recent share price move was "hard to justify", and the bank has left its forecasts and target price unchanged.

"We believe that Inchcape has a unique opportunity to consolidate the automotive distribution market. Our 10 December report shows that a FY24 share buyback could support double-digit EPS accretion. Our 2025E adj. PBT forecast of £525m is 6% above company-compiled consensus," Truslove said in a research report.

The stock, which Citi said trades at just eight times forward earnings, was up 0.2% at 646p by 0925 GMT.

FTSE 250 ( MCX )

Isin: N/A
Exchange: London Stock Exchange
Sell:
0.00
Buy:
0.00
Change: -19.26 ( -0.09 %)
Date:
Prices delayed by at least 15 minutes

Compare our accounts

If you're looking to grow your money over the longer term (5+ years), we have a range of investment choices to help.

View our accounts

Lloyds Bank is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.

Important legal information

Lloyds and Lloyds Bank are trading names of Halifax Share Dealing Limited. The Lloyds Bank Direct Investments Service is operated by Halifax Share Dealing Limited. Registered Office: Trinity Road, Halifax, West Yorkshire, HX1 2RG. Registered in England and Wales no. 3195646. Halifax Share Dealing Limited is authorised and regulated by the Financial Conduct Authority, 12 Endeavour Square, London, E20 1JN under registration number 183332. A Member of the London Stock Exchange and an HM Revenue & Customs Approved ISA Manager.

Logo Allfunds

The information contained within this website is provided by Allfunds Digital, S.L.U. acting through its business division Digital Look Ltd unless otherwise stated. The information is not intended to be advice or a recommendation to buy, sell or hold any of the shares, companies or investment vehicles mentioned, nor is it information meant to be a research recommendation. This is a solution powered by Allfunds Digital, S.L.U. acting through its business division Digital Look Ltd incorporating their prices, data news, charts, fundamentals and investor tools on this site. Terms and conditions apply. Prices and trades are provided by Allfunds Digital, S.L.U. acting through its business division Digital Look Ltd and are delayed by at least 15 minutes.

FE fundinfo Logo

Data provided by FE fundinfo. Care has been taken to ensure that the information is correct, but FE fundinfo neither warrants, represents nor guarantees the contents of information, nor does it accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein. Past performance does not predict future performance, it should not be the main or sole reason for making an investment decision. The value of investments and any income from them can fall as well as rise.

Refinitiv Logo

© 2025 Refinitiv, an LSEG business. All rights reserved.