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Eagers Automotive Earnings Seen to Take Hit from Currency Headwinds, Toyota Supply Snags, Says Jefferies

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Eagers Automotive (ASX:APE) could see its annual earnings impacted by a stronger Australian dollar against the Canadian dollar, which may hurt CanadaOne sales amid ongoing concerns over Toyota supply, Jefferies said in a note on Tuesday.

The investment firm cut its fiscal year 2026 and fiscal year 2027 EPS forecasts by 10% and 11%, respectively. Group revenue estimates were also trimmed by 3% for both fiscal years.

Jefferies said the earnings downgrade is largely technical and does not change its long-term positive view on the company and its several medium-term growth initiatives, including expansion through BYD, CanadaOne market consolidation, real estate optimization, and Mitsubishi Mobility partnership.

The brokerage said Toyota supply issues remain a concern and could weigh on results. Although the company is not dependent on Toyota, with Toyota franchises making up less than 10% of its passenger vehicle network.

Jefferies maintained a buy rating on Eagers Automotive but cut its price target to AU$27.50 from AU$30.50.

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