Sign up Australia
Proactive Investors - Run By Investors For Investors

UBS upgrade helps drive shares in Autotrader higher, with a change up to ‘neutral’ on valuation grounds

In a note to clients, UBS’s analysts pointed out: “Since their FY17 results on the 8th June, Autotrader’s share price has underperformed the FTSE100 by 13%”
Car
But, they added: “With the current share price now implying a c5% 2017-26 revenue CAGR, we think this revenue growth is achievable and therefore we upgrade "

An upgrade from UBS helped drive shares in online car dealing firm Autotrader Group PLC (LON:AUTO) higher today, with the Swiss bank upping its stance to ‘neutral’ from ‘sell’ on valuation grounds.

In a note to clients, UBS’s analysts pointed out: “Since their FY17 results on the 8th June, Autotrader’s share price has underperformed the FTSE100 by 13%.”

READ: Auto Trader shares fall on car market worries, despite tripled dividend on solid full-year profit growth

They added: “While we did cut EPS estimates slightly (1-2%) post results, we believe the sell-off is due to concerns over UK consumer, Amazon and a drop in used car transactions.”

The analysts said: “Our initial Sell call was based on our view that expectations for 7-8% 2017-26 revenue CAGR were too high.”

But, they added: “With the current share price now implying a c5% 2017-26 revenue CAGR, we think this revenue growth is achievable and therefore we upgrade our recommendation.”

In mid morning trading, Autotrader shares were 2.5%, or 8.8p higher at 367.7p, with UBS maintaining a 12 month price target on the stock of 375p.





Register here to be notified of future AUTO Company articles
View full AUTO profile View Profile

Related Articles

Medical tests
July 11 2017
In an operational update, the medical services and software company said a multi-centre investigator led study comprising data from 607 patients at two academic university hospitals has now been completed
H&T Pawnbrokers store
November 15 2017
“We have delivered a strong trading performance during the second half in the key segments of Pawnbroking, Retail and Personal Loans”

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2017

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use