Australia's CAR rises; brokerages see potentially upbeat FY26

CAR

18/07/2025 06:49

Updates

** CAR Group CAR.AX rises as much as 4% to A$37.810

** UBS hikes PT to A$46 from A$45; Morningstar maintains fair value estimate of A$31

** Online vehicle marketplace business announced new CEO and estimates for its FY25 results earlier this week

** Morningstar believes CEO change will have limited impact on firm; sees EBIDTA margins improving to 55% in FY26, driven by increasing profitability from co's overseas marketplaces

** UBS expresses confidence in co's Australia and Brazil segments

** However, notes potential challenges to FY26 in U.S., which can be navigated by managing costs appropriately

** Stock rated "buy" on avg; median PT is A$40.80, per data compiled by LSEG

** YTD, CAR up ~4.6%

 (Reporting by Roshan Thomas in Bengaluru)

 ((Roshan.Thomas@thomsonreuters.com))