Connect with us

Hi, what are you looking for?

Alive Business PlanAlive Business Plan

Stock

Inchcape shares plunge over 10% after J.P. Morgan downgrade to ‘neutral’

Investing.com — Shares of Inchcape (LON:INCH) took a hit on Thursday, plunging more than 10% after analysts at J.P. Morgan downgraded the stock to a “neutral” from an “overweight” rating.

The downgrade reflects growing concerns over increased market volatility and challenges facing Inchcape in key regions such as Chile and the Asia-Pacific.

The analysts indicate that the automotive distribution market is changing significantly. This includes the growing influence of Chinese OEMs and shifts in market conditions, which are affecting Inchcape’s business.

The loss of key Chinese brands like Geely and JAC Autos in Chile, coupled with Stellantis (NYSE:STLA)’s decision to take over direct management of Citroën and DS brands in the same market, highlights risks associated with distribution agreements. Chile is Inchcape’s largest market, accounting for over 20% of its new vehicle sales.

J.P. Morgan also flagged challenges in Asia-Pacific, where market share losses in Australia, Singapore, and Hong Kong indicate increased competition. Electric vehicle manufacturers like Tesla (NASDAQ:TSLA) and BYD (SZ:002594) are gaining market share, disrupting established players and creating a more fragmented market.

The analysts note Inchcape’s acquisition of Derco, which has diversified its operations. However, analysts believe near-term challenges outweigh these long-term benefits, leading to a price target reduction from 1,050 pence to 800 pence.

Inchcape’s management will address these challenges during its FY results presentation on March 4.

J.P. Morgan cautioned that their 2025 profit assumptions are roughly 10% below market consensus.

This reflects the view that while Inchcape remains a strong player in the automotive distribution space, it is entering a phase of heightened uncertainty that could see its profit pools face further pressure.

This post appeared first on investing.com
Become a VIP member by signing up for our newsletter. Enjoy exclusive content, early access to sales, and special offers just for you! As a VIP, you'll receive personalized updates, loyalty rewards, and invitations to private events. Elevate your experience and join our exclusive community today!

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    You May Also Like

    Latest News

    The Gateway Pundit, a far-right website, published a note from its editor on Saturday acknowledging that two election workers in Georgia did not engage...

    Latest News

    Sister Stephanie Schmidt had a hunch about what her fellow nuns would discuss over dinner at their Erie, Pennsylvania, monastery on Wednesday night. The...

    Investing

    JAKARTA (Reuters) -Indonesia has asked Alphabet (NASDAQ:GOOGL)’s Google and Apple (NASDAQ:AAPL) to block Chinese fast fashion e-commerce firm Temu in their application stores in...

    Latest News

    New majorities in Congress, particularly when the incoming party has a new leader, offer the rare chance for the institution to take a breath...



    Disclaimer: alivebusinessplan.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 alivebusinessplan.com