- Autotrader Group
- 26 May 2026 13:29:00
Source: Sharecast
Panmure said the aftermath of the "disastrous" Deal Builder rollout has been worse than it expected.
The broker now forecasts underlying top-line growth of 1% in FY27, plus second half-weighted EBIT growth of 1.2%.
It noted that Autotrader bought back around £270m in stock in the second half and has committed to another £500m buyback in FY27, but said earnings per share accretion is offset by higher net finance costs. This has led Panmure to trim its FY27 EPS forecast by 3% and upgrade its FY28 estimate by 2%.
"Autotrader is still a good business, capable of delivering mid-single-digit top-line growth in the medium term," said Panmure. "The company has managed to execute a 5.5% pricing round - in other words, the wheels haven’t come off entirely.
"However, guidance presumes recovery in paying retailer customers, and the end-market remains weak."
It said the Deal Builder product was planned to be a core growth driver, but it looks unlikely that it will contribute materially in the next few years, and in its absence the broker is left questioning what Autotrader’s next growth driver will be.
"We think the subsector remains undervalued, but struggle to see why one would buy this stock over Rightmove," it said.
It said the new target price is based on a 10% free cash flow yield for a stock with 1% underlying growth.
At 1326 BST, the shares were down 3% at 440.70p.