• Mark Watson-Mitchell

Liberum looking long-term at Motorpoint

Car dealership Motorpoint (MOTR) can continue growing in the long term but there are short-term visibility issues, according to Liberum.

Analyst Sanjay Vidyarthi retained his ‘buy’ recommendation but reduced the target price from 270p to 195p on the stock, which closed flat at 148p on Friday. T

he group delivered strong first-half results and market share gains but ‘at a materially reduced level of profitability’.

‘After a strong summer, trading conditions worsened materially in September,’ said Vidyarthi.

‘We reduce our full-year 2023 profit before tax [forecast] by 50% to £7m. Management expects the trading environment to remain difficult but will continue to invest in strategic growth initiatives while aiming to remain profitable and cash generative.’

Although there are short-term headwinds for the group, Vidyarthi said there was longer-term optimism.

‘Market share gains combined with productivity improvements should support longer-term growth and profits, but there is limited visibility on this right now,’ he said.

Source: citywire.co.uk

Recent Posts

See All

Hollywood Bowl (BOWL) is too cheap considering the ten-pin bowling operator continues to outperform, says Berenberg. Analyst Owen Shirley retained his ‘buy’ recommendation and target price of 350p on

Ventilation group Volution (FAN) has delivered strong 2022 numbers and Berenberg believes this puts it on track to narrow the valuation gap with its European peers. Analyst Lushanthan Mahendrarajah re

XP Power (XPP) has faced supply chain and inflation pressures but CT UK Capital & Income (CTUK) manager Julian Cane believes longer term it can return to its former glory. In his latest update for the