Analyst James Wheatcroft from Jefferies maintained a Buy rating on Inchcape (INCH – Research Report) and keeping the price target at p1,050.00.
James Wheatcroft has given his Buy rating due to a combination of factors that highlight Inchcape’s potential for growth and value. The company has reiterated its guidance for fiscal year 2025, indicating confidence in its ability to achieve growth despite current challenges. A favorable product cycle, particularly in the Asia-Pacific region, is expected to boost performance in the second half of the year, showcasing the benefits of Inchcape’s diverse market presence.
Furthermore, the valuation for fiscal year 2025 remains attractive, with the company’s price-to-earnings and enterprise value-to-EBITDA ratios at the lower end of the historical range. This is despite expectations of 10% annual EPS growth and significant free cash flow generation over the next five years. The company’s financial model, characterized by high margins and strong cash flow, supports the case for a positive re-rating over time, making it an appealing investment opportunity.
Based on the recent corporate insider activity of 47 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of INCH in relation to earlier this year.