Analysts at Berenberg lowered their target price on Auto Trader from 880.0p to 830.0p on Friday, stating the group's "noisy" H1 had raised questions.
Auto Trader Group
08 November 2024 10:11:09
Source: Sharecast
Auto Trader reported its H125 results on 7 November, with shares ending the session down 7% as a result. While management reiterated its FY25 outlook, Berenberg noted that the shape of delivery has changed, with consensus forecasts for average revenue per retailer likely to come down and for retailer forecourts likely to go up, with those factors expected to offset each other.
In the German bank's view, yesterday's share price move reflected some scepticism about the company's ability to re-accelerate ARPR growth to deliver FY26 consensus forecasts.
Berenberg, which has a 'hold' rating on the stock, added that Auto Trader shares were currently trading on a 24.0x FY25 price-to-earnings ratio.
Halifax is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.
