Carsales.com's stake purchase makes strategic and financial sense - Morgan Stanley

CAR

15/03/2023 02:20

** Analysts at Morgan Stanley think the market
underestimates the earnings strength of the core business of
Australia's Carsales.Com  CAR.AX  
    ** Brokerage lifts PT on the online auto classifieds firm to
A$27.00 from A$26.50; adds co's track record of creating value
in its international assets is very good
    ** Adds co's proposed stake acquisition in Webmotors makes
more strategic and financial sense
    ** The company earlier in the month said it would raise
A$500 million ($334.10 million) to fund deal to acquire
additional 40% stake in Brazil-based automotive digital
marketplace Webmotors SA
    ** Says interim modelling suggests the proposed acquisition
will deliver about an estimated 5% lift in co's FY23 EPS 
    ** CAR is currently down 0.5%
    ** Stock has risen 7.1% this year, as of last close 


($1 = 1.4966 Australian dollars)

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