Macquarie’s analysts have slightly adjusted their price target for Australia’s GUD Holdings (ASX:GUD), lifting it by 1% to A$11.75 per share.

On Monday GUD Holdings reported the divestment of its Davey Water Products business to its ASX peer, Waterco, for a straightforward payment of A$64.9 million.

The brokerage service suggests that this business move is beneficial, and it mollifies any concerns regarding debt related to the company.

The decision to divest from Davey Water Products allows GUD Holdings to streamline its business structure and convert wholly to an automotive business.

This move has also enhanced GUD Holdings' financial flexibility according to Macquarie.

The majority of analysts, nine out of ten, rate GUD Holdings' stock as ‘buy’ or higher, with one analyst rating it as ‘hold’.

The median price target according to Refinitiv data is A$11.80.

As of the last close, GUD Holdings' stock had risen by 36.8% within this year.

GUD Holdings (ASX:GUD) is known for its engagements within the automotive industry, recently transitioning to a pure-play automotive business model after divesting from its Davey Water Products business.