Bell Potter says Australia's AMA Group 'valuable' despite short-term revenue concerns; shares rise

By Reuters News

** AMA Group AMA.AX shares rise as much as 2% to A$0.505

** On track to log 3% weekly gain, best performance since week ended September 4

** Bell Potter ("buy", cuts PT by 6% to A$0.85) notes reduced repair volumes

** Forecasts revenue growth of 2% in FY27 versus 3% previously estimated

** Adds, despite downgrades, stock still looks valuable with a FY27 EV/EBITDA multiple of 3.4x, PT "still at a significant premium to the share price"

** "We still expect the company to be free cash flow positive this year" - Bell Potter

** 2 of 3 analysts rate the stock "buy" or higher; their median PT is A$0.92 – LSEG-compiled data

** Stock has lost 37.5% year to date

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