Peter Warren Automotive will acquire a majority stake in three Warren Family Dealerships (two Toyota; one Volkswagen) for -$45m, funded by debt. 

Morgans believes the acquisitions will be EPS accretive but notes shareholder approval is still required.

The broker lowers its FY23 profit forecast as port delays continue to impact the vehichle supply chain and its target is trimmed to $3.20 from $3.25. Add.

Sector: Retailing.

Target price is $3.20.Current Price is $2.60. Difference: $0.60 - (brackets indicate current price is over target). If PWR meets the Morgans target it will return approximately 19% (excluding dividends, fees and charges - negative figures indicate an expected loss).

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