Australia's Carsales.Com to benefit from extra 40% stake in Webmotors - Analysts

CAR

08/03/2023 19:36

** Analysts expect online auto classifieds firm Carsales.Com
Ltd  CAR.AX  to enjoy synergy benefits from acquisition of extra
40% stake in Brazilian automotive digital marketplace Webmotors
SA
    ** Carsales said on Wednesday it was seeking to raise A$500
million ($329 million) to buy an extra 40% stake in Brazil-based
automotive digital marketplace Webmotors SA
    ** Jefferies notes that CAR will be able to apply its IP to
Webmotors, e.g. growing the media display business, introducing
dynamic pricing, instant offer etc
    ** Morningstar says the acquisition is reflective of
Carsales' ongoing strategy to gradually build a global group of
leading platforms in automotive and adjacent industries
    ** Morningstar, however, would have preferred full
acquisition of Webmotors 
    ** Jefferies trims FY24 EPS outlook by 1.2% because of co's
increased investment, cuts PT on CAR to A$26.54 from A$27.00
    ** Seven of sixteen analysts rate the stock "buy" or higher,
seven "hold" and two "sell"; their median PT is A$24.40 –
Refinitiv data
    ** Stock up 9.1% this year, as of last close

 (Reporting by Poonam Behura in Bengaluru)
 ((Poonam.Behura@thomsonreuters.com;))