It's been a positive day for the Australian share market overall, but its gains are nothing compared to those enjoyed by Burson Group Ltd (ASX: BAP) this morning. The stock soared as much as 8.8% early in the session to hit a record high $3.10 per share on the back of an analyst upgrade, before retreating to $3.05.
So What: When Burson Group reported its half-year earnings results last month, it announced a 9.7% increase in revenue and a 14.3% lift in net profit compared to the prior corresponding period. Meanwhile, it said it is on track to exceed its prospectus forecast of 124 stores by the end of the financial year, while it is targeting 175 stores by 2019.
Burson's strong performance was rewarded this morning when Morgan Stanley upgraded its recommendation on the stock from 'Equal-weight' to 'Overweight', raising its price target by 26% to $3.15.
Now What: Burson Group provides replacement parts and consumables that are used in the servicing and repair of used vehicles. While the company has demonstrated strong growth capabilities, it could actually benefit from some of the headwinds facing the economy, including the rising unemployment rate, as people tend to hold onto their older vehicles for longer in times of uncertainty.
