Cazoo Group rises on Berenberg's double upgrade to 'buy'

Cazoo

10/08/2022 13:45

** Online car retailer Cazoo Group's shares  CZOO.N  rise
7.6% to 99 cents premarket
    ** Berenberg double upgrades rating on CZOO to "buy" from
"sell"; raises PT to $2.33 from $0.49 
    ** Says it sees co's indication after H1 results to pivot
strategy by announcing a review of its European operations as a
positive catalyst
    ** Brokerage says it is upgrading rating as the pivot is
playing out much sooner than it expected and has updated its
forecasts and valuation to reflect a full European exit
    ** "Only under a full exit from Europe do we find that Cazoo
can avoid raising external capital, thus removing its financing
risk entirely" - Berenberg
    ** Current avg. rating of 7 analysts covering the stock is
"hold" and their median PT is $1 - Refinitiv data
    ** Up to last close, stock had declined ~85% YTD

 (Reporting by Chavi Mehta in Bengaluru)
 ((Chavi.Mehta@thomsonreuters.com;))