Australia's CAR Group slips; Macquarie cautious over limited margin expansion

CAR

13/08/2024 03:17

** Shares of Australia's CAR Group  CAR.AX  fall as much as
1.6% to A$34.57
    ** Stock set for its worst trading session since Aug 5, if
losses hold 
    ** The firm, which offers online space to buy vehicles,
guided towards near-term flat margins 
    ** Analysts at Macquarie say margins expansion on the firm,
which was formerly known as CarSales, appears to be limited
across any geography
    ** Co said its capex is expected to grow at the same level
as revenue, with brokerage now focussing on the fact that firm's
market position and product innovation "does not come for free"
    ** Brokerage adds that new car demand has moderated in
recent months in Australia; retains "neutral" on co
    ** Stock has risen 12.9% this year, as of last close 

    

 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))