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AOV Will Balance EPS Support From Buybacks Against Moderating Revenue Outlook

Legacy Auto Markets Will Diminish As Electrification Reshapes The Industry

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AOV
AnalystLowTarget
Not Invested
Published 02 Aug 2025

Update shared on 12 Dec 2025

Fair value Increased 16%
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AnalystLowTarget's Fair Value
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1Y
-13.5%
7D
0.6%

Analysts have raised their price target on Amotiv from approximately 8.39 to 9.73. This reflects increased confidence in the company’s improving profit margins and slightly more favorable valuation multiples, despite moderating revenue growth expectations.

What's in the News

  • Completed a major share buyback program, repurchasing a total of 7,044,734 shares, or 5.05% of outstanding shares, for AUD 66.94 million under the authorization announced October 21, 2024 (company filing)
  • Recent tranche activity from July 1, 2025 to October 1, 2025 included repurchasing 1,222,527 shares, or 0.9% of shares, for AUD 10.54 million (company filing)
  • Ongoing capital return via buybacks is described as supporting earnings per share and signaling management’s confidence in Amotiv’s long term prospects (analysis based on company filing)

Valuation Changes

  • The fair value estimate has risen moderately from A$8.39 to A$9.73, implying a higher intrinsic valuation for Amotiv shares.
  • The discount rate has increased slightly from 8.10 percent to 8.74 percent, reflecting a modest uptick in the required return for investors.
  • Revenue growth assumptions have been reduced from about 3.90 percent to 3.11 percent, indicating somewhat more cautious expectations for top line expansion.
  • The net profit margin forecast has risen meaningfully from 10.71 percent to 13.03 percent, pointing to stronger anticipated profitability.
  • The future P/E multiple has declined slightly from 11.76x to 10.80x, suggesting a marginally lower valuation multiple applied to forward earnings.

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Disclaimer

AnalystLowTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystLowTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystLowTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.