Jefferies hikes Carsales.Com PT on strong yield growth across divisions

CAR

14/02/2023 24:36

** Jefferies says Aussie online auto classifieds firm
Carsales.Com Ltd  CAR.AX  generated strong yield growth across
all divisions, aided by its market position and investment in
technology; hikes PT to A$27.00 from A$26.38, maintains 'buy'
rating
    ** CAR rose as much as 2.5% on Monday after posting a 15%
rise in HY pro-forma revenue of A$388 mln ($270.16 mln)
 urn:newsml:reuters.com:*:nL4N34T095
    ** Jefferies says CAR's adjusted NPAT of A$122 mln was
consistent with Visible Alpha consensus
    ** We like the fact that CAR is more reliant on yield, as 
volume can be tricky to predict in the current environment -
Jefferies  
    ** Brokerage adds CAR's domestic earnings are mainly driven
by used cars, which have been resilient  during  weak  economic 
cycles
    ** Eight of 16 analysts rate the stock "buy" or higher,
seven "hold" and one "sell"; their median PT is A$24.15 –
Refinitiv data
    ** Stock has risen 9.3% this year
($1 = 1.4362 Australian dollars)
 (Reporting by Jaskiran Singh in Bengaluru)
 ((Jaskiran.Singh@thomsonreuters.com;))