The broker had previously highlighted key drivers of the strength which were re-iterated by management. These include an increase in sales of second hand cars, reduced use of public transport/shared transport and government stimulus programs.
Management now expects the first half FY21 to be strong, while the second half 'remains unclear'.
The analyst feels FY21 should shape up to be a very strong period of growth and thinks the key drivers of this strength should persist for some time.
Morgans upgrades the FY21 EPS forecast by around 8.5%, while outer year upgrades are more modest as trading conditions are expected to normalise in time.
The Hold rating is unchanged and the target price is increased to
Sector: Retailing.
Target price is
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