Shares in Inchcape PLC (LSE:INCH) fell 7% on Tuesday after analysts trimmed their forecasts to reflect foreign exchange headwinds, overshadowing otherwise resilient results and upbeat guidance for the rest of the year.
The global automotive distributor reported interim revenue of £4.3 billion for the first half, down 4% at constant currency and 9% on a reported basis.
This was largely due to currency movements and the disposal of a non-core retail business in the Americas.
Adjusted pre-tax profit fell 4% in constant currency and 12% on a reported basis to £200 million, while statutory profit was stable at £129 million.
Despite the market reaction, Inchcape maintained its full-year outlook, highlighting expected growth in the second half driven by new product launches and continued cost control.
The group also announced nine new distribution contracts, further share buybacks, and an interim dividend of 9.5p per share.
Peel Hunt repeated its 'buy' advice and 900p price target, noting the stock trades at just over nine times projected earnings, which is relatively cheap for the sector.
The stock fell 69p to 731p.