Recent speculations indicate potential sales growth for GUD Holdings (ASX:GUD) from their AutoPacific Group, which was acquired earlier in 2022.

Financial analysts predict high sales growth for the fiscal year 2024 (FY24).

The automotive parts manufacturer recently reported an annual underlying net profit after tax of A$118.7 million, showing an increase of 33% from previous figures, along with increased revenue and EBITA growth for their APG business in FY24 expected.

According to estimates from Morningstar, AutoPacific’s sales are projected to grow by 7% in FY24, while Citi predicts a 24% growth in margins for the same fiscal year.

Citi analysts have noted GUD’s potential in the small cap auto parts sector, recognizing the continuous improvements made by APG, specifically in mitigating supply constraint issues.

Furthermore, Morningstar continues to hold its fair value estimate for GUD’s stock at A$12 per share, with a high uncertainty rating.

On the other hand, Citi has increased their price target to A$13.30 per share and advise to buy.

Out of nine, eight analysts encourage buying or rating the stock higher, one suggests holding, while none recommend selling or downgrading; their median price target is A$11.78.

As of the latest closing, GUD’s stock has witnessed an approximate increase of 54.9% this year.

GUD Holdings (ASX:GUD) is a leading automotive parts manufacturer based in Australia.