Jefferies cuts PT for Australia's CAR Group on slightly lower FY26 forecasts

CAR

11/08/2025 20:07

** Analysts at Jefferies highlight improvement in CAR Group's CAR.AX U.S. business despite tough macro environment

** Australia-based online vehicle marketplace business reported NPAT of A$275 mln ($179.14 mln), up 10% on pcp

** Brokerage, however, cuts price target to A$42.00/shr from A$42.10/shr, says forecast implies group margin will tick down in FY26 due to investments

** Jefferies also cuts EPS forecasts by 3% in FY26 and FY27 due to investments in new products and businesses by co

** "We forecast a 40 bps reduction in EBITDA margin in FY26, before recovering to 56% in FY27 estimates as new products are delivered," Jefferies says

** Brokerage notes co has been paying minimal tax in U.S., helping business growth

** YTD, stock up 3.3% as of last close

($1 = 1.5352 Australian dollars)

 (Reporting by Shivangi Lahiri in Bengaluru)

 ((shivangi.lahiri@thomsonreuters.com))