Citi sees earnings upside for Australia's Carsales.Com on strong demand

CAR

11/09/2023 02:02

** Analysts at Citi see Australia's Carsales.Com Ltd
 CAR.AX  driving mid-teens revenue growth over the medium term,
as the brokerage expects the company to foster margin expansion
as dealers increase marketing budget to drive demand 
    ** Shares in CAR rose as much as 1.1% to A$29.120, their
highest level on record 
    ** Citi sees increased investments in CAR as a positive,
sees stronger yield growth as upside to Citi's 14% year-on-year
FY24 revenue growth forecast 
    ** Citi sees strong growth for CAR in private revenue from
better pricing options and an increase in volumes 
    ** 10 out of 16 analysts rate the stock 'buy' or higher, 6
rate it 'hold'; their median PT is A$28.25 - LSEG data 
    ** Stock up 39.8% this year as of last close, vs a 1.7%
increase in the benchmark S&P/ASX 200 index  .AXJO  


 (Reporting by Roushni Nair in Bengaluru)
 ((Roushni.Nair@thomsonreuters.com;))