Jefferies raises PT on Australia's Carsales.Com, sees upside from tier 2 market penetration

CAR

21/04/2023 05:49

** Jefferies raises price target on Australian online auto
classifieds firm Carsales.Com  CAR.AX  to A$26.67 from A$26.54,
maintains "buy" rating
    ** Says CAR is more resilient than other online classifieds
because 50% of its EBITDA is now coming from offshore
    ** Citi also sees significant upside from CAR's penetration
into tier 2 markets, which when combined are larger than the 
Australian market
    ** Says CAR's media business is more resilient now that it
has diversified to non-auto verticals; co recently acquired
adtech co Publift to bolster programmatic advertising capability
    ** Brokerage, however, sees potential risks from a weaker
macro environment and downgrades EPS forecasts for FY24-25
estimates by 3%
    ** Nine of 16 analysts rate the stock "buy" or higher, five
"hold" and two "sell"; their median PT is A$24.33 – Refinitiv
data
    ** Stock had risen 11.5% this year, as of last close
 
    
    
    

 (Reporting by Jaskiran Singh in Bengaluru)
 ((Jaskiran.Singh@thomsonreuters.com;))