2318 GMT [Dow Jones]--Car parts retailer ARB's share price has underperformed the ASX 300 index by some 50% over the past 12 months. That means its price-to-earnings multiple is now at its lowest level in a decade. Still, its bull at Jefferies says the business is intact. Analyst John Campbell attributes the sharp share-price underperformance to excessive valuation metrics applied to a consumer discretionary stock leading into a protracted downturn. "Fundamentally, we don't think anything's changed," Jefferies says. ARB isn't facing disruption and the market structure hasn't got tougher. "The Australian cycle's weak but at 16x PE in year three of the downturn, it looks cheap to us," Jefferies says. Its price target falls 17% to A$25.00/share. ARB ended Monday at A$17.41. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

July 20, 2026 19:20 ET (23:20 GMT)

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