Investing.com -- Deutsche Bank has downgraded Inchcape (LON: INCH ) to “hold” from “buy” and reduced its target price to 800p from 1000p, following a slower-than-expected start to fiscal year 2025.

The company’s first-quarter results were largely in line with earlier guidance, with a stronger second half anticipated due to product cycles and new contracts.

For Q1, Inchcape reported revenue of £2.1 billion, marking an 8% decline on a reported basis and a 5% drop on an organic basis. This compares with a 1% decline in Q4 2024, which faced a more favorable comparator.

In the first quarter, Inchcape’s revenue accounted for 22% of the company’s full-year forecast, compared with 25% at the same point in FY24.

Regional performance was generally in line with industry trends, although Inchcape appears to have outperformed the broader market in certain areas.

In the Americas, the company saw continued improvements. However, the Asia-Pacific region faced mixed results, particularly in key markets such as Hong Kong. Europe and Africa experienced lower revenues, largely due to the unwinding of order banks, which had been strong in the prior year.

Despite the challenges, Inchcape’s management believes the company slightly outperformed regional volumes.

The company reported a 3% increase in volume, compared with a 4% decline in total industry volumes.

Additionally, the company secured seven new distribution wins in the first quarter, which are expected to support future revenue growth.