Inchcape (LON:INCH) Earns "Buy" Rating from Jefferies Financial Group

Key Points

• Jefferies reiterated a "Buy" rating on Inchcape with a GBX 1,050 price target (about a 27.96% upside); the stock has a consensus Moderate Buy and analyst targets range up to GBX 1,330 (Citigroup).
• Shares traded at GBX 820.60 with a market cap of £2.92bn and a P/E of 11.46, leaving the current price below most analyst targets and near its 50‑day moving average.
• The board authorized a share repurchase program and insiders own ~9.43% of the stock (though an insider recently sold), which management frames as a signal the shares may be undervalued.

Inchcape (LON:INCH - Get Free Report)'s stock had its "buy" rating reiterated by equities research analysts at Jefferies Financial Group in a report issued on Thursday,Digital Look reports. They presently have a GBX 1,050 price target on the stock. Jefferies Financial Group's price objective indicates a potential upside of 27.96% from the company's previous close.

Other analysts have also recently issued research reports about the stock. Berenberg Bank reissued a "buy" rating and set a GBX 1,170 target price on shares of Inchcape in a research note on Thursday. Deutsche Bank Aktiengesellschaft boosted their target price on shares of Inchcape from GBX 800 to GBX 830 and gave the stock a "buy" rating in a research note on Wednesday, March 4th. Finally, Citigroup boosted their price target on shares of Inchcape from GBX 1,115 to GBX 1,330 and gave the stock a "buy" rating in a research report on Thursday, March 5th. Five equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of GBX 1,060.

Inchcape Price Performance

Shares of INCH stock traded up GBX 7.60 on Thursday, reaching GBX 820.60. 846,920 shares of the company were exchanged, compared to its average volume of 7,130,718. The company has a market cap of £2.92 billion, a price-to-earnings ratio of 11.46, a P/E/G ratio of 2.06 and a beta of 0.95. The business has a 50-day moving average price of GBX 810.52 and a 200 day moving average price of GBX 787.01. The company has a debt-to-equity ratio of 100.56, a quick ratio of 0.51 and a current ratio of 1.07. Inchcape has a 1 year low of GBX 640.50 and a 1 year high of GBX 895.

Inchcape (LON:INCH - Get Free Report) last released its earnings results on Tuesday, March 3rd. The company reported GBX 80.80 EPS for the quarter. Inchcape had a net margin of 2.99% and a return on equity of 23.83%. Equities research analysts forecast that Inchcape will post 85.9639233 earnings per share for the current fiscal year.

Inchcape declared that its board has authorized a share repurchase program on Tuesday, March 3rd that allows the company to buyback 0 outstanding shares. This buyback authorization allows the company to repurchase shares of its stock through open market purchases. Stock buyback programs are typically a sign that the company's management believes its stock is undervalued.

Insiders Place Their Bets

In other Inchcape news, insider Adrian Lewis sold 398 shares of the business's stock in a transaction dated Thursday, April 9th. The shares were sold at an average price of GBX 789, for a total value of £3,140.22. 9.43% of the stock is owned by insiders.

Inchcape Company Profile

Inchcape is the leading global automotive distributor, with operations across six continents. By combining our in-market expertise with our unique technology and advanced data analytics, we create innovative customer experiences that deliver outstanding performance for our partners – building stronger automotive brands and creating sustainable growth. Our distribution platform connects the products of mobility company partners with customers, and our responsibilities span product planning and pricing, import and logistics, brand and marketing to operating digital sales, managing physical sales and aftermarket service channels.

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