Morgans upgrades to Add from Hold and lifts the target price to $20.82 from $19.45. The broker is supportive of the recent acquisition of Trader Interactive, which will likely reinvigorate topline growth.
The analyst sees Carsales.Com as providing the best growth/valuation trade-off amongst the domestic classifieds players at present. With strong domestic new car sales and Korea travelling well despite covid, conditions are considered to remain supportive into FY22.
Sector: Software & Services.
Target price is $20.82.Current Price is $17.20. Difference: $3.62 – (brackets indicate current price is over target). If CAR meets the Morgans target it will return approximately 17% (excluding dividends, fees and charges – negative figures indicate an expected loss).
