The latest data from the SMMT has positive read across for the motor retail stocks where the average valuation gap vs. the overall retail sector has now widened to almost 35% given the level of re-rating witnessed elsewhere. The recent £/€ rate bodes well for continued momentum. The next motor retailer to update will be Marshall Motors on Thursday (its maiden H1 pre-close) which we expect to read well. However, our preferred stocks in the sub-sector are Lookers (Buy) trading on a cal’15 P/E of 1 ....
