Deutsche Bank lowers target price on Inchcape

(Sharecast News) - Deutsche Bank cut its Inchcape target price to 750p from 870p and reiterated its 'hold' rating on the stock, warning that the distributor's product portfolio was losing ground in a market rapidly shifting toward newenergy vehicles.

The German bank said Inchcape's thirdquarter update added to concerns, with volumes up 3% but lagging a global market growing 9%. Organic revenue growth slowed to 1%, down from 5% in the first half, against tougher comparatives.

Performance varied sharply by region, with volumes in the Americas rising 10% but still underperforming a 24% market gain due to logistical issues, while Europe and Africa delivered a stronger showing, with volumes up 16% against a 2% market rise. However, Asia-Pacific trading was "particularly weak", with volumes down 37% versus a 5% market increase. Australia was the standout drag, with volumes plunging 50% against a flat market.

Deutsche Bank said the group's FY26 guidance had assumed a successful new product launch in Australia, but the update made clear this had not materialised. Accelerated NEV adoption in the region was contributing to both volume declines and margin pressure, reinforcing the broker's view that Inchcape's current portfolio was not sufficiently aligned with the pace of change in the automotive market.

DB said its reduced target price reflected these mounting headwinds and the risk that underperformance persists as NEV penetration continues to rise.

Reporting by Iain Gilbert at Sharecast.com