Simon,My broker has sent me their latest research report. Here's...

Simon,

My broker has sent me their latest research report. Here's the investment case section:

AHE is trading on normalised PERs of 10.3x FY10 and 9.5x FY11, relatively cheap multiples in our view given they are based on earnings at the lower end of the cycle, the high barriers to entry, and managements strong track record.
We have increased our 12 month price target to $2.86 per share, from $2.56, set at 12x our revised EPS forecast of 23.8 cents for FY11. AHE has historically traded higher han 12x earnings and we expect a re-rating to occur as automotive trading conditions continue to improve.

Applying a PER multiple of 12x FY11 earnings forecasts for ach division results in a SOP valuation of $2.86 per share, comprising of $1.88 per share for the automotive retailing division and 98 cents per share for the logistics division.
Acquisitions would provide upside to our price target.


Just for your interest the two WA based LIC's - WIC and OZG are holding $19.5m and $8.5m of AHE. Its in the december report.

Regards
P