Jefferies scrutinises tariff impact on Australia's ARB amid market uncertainty

Jefferies highlights the fall of auto parts manufacturer ARB's ARB.AX shares after the U.S. election, despite ambiguity surrounding final tariff regime

ARB's shares have dropped by 21%, contrasting avg 12% rise seen by Asian auto parts cos — brokerage

Highlights 25% tariffs on USMCA partners and 20% on China, which led to a retaliatory tariff from China on larger U.S. vehicles

The 25% extra tariff on steel and aluminium from all countries could affect ARB's ops in Thailand and Australia, but the impact on autos and auto parts remains unclear — Jefferies

Brokerage observes ARB's expanding U.S. distribution, hinting at potentially significant market opportunity in world's largest 4x4 market

Rates stock as "hold" at a price target of A$36/shr

5 of 14 analysts rate the stock "buy" or higher, 8 "hold" and 1 "sell"; their median PT is A$40.17 — LSEG data

Stock down 16.4% YTD as of the last close