Citi Raises Price Target for CAR Group Stock, Anticipates Strong Revenue Growth: Analysis & Outlook
In a recent update, Citi raised its price target for CAR Group (CAR:AU) stock to AUD39.50, highlighting the company's stronger-than-expected revenue guidance. The financial institution reiterated a Buy rating on the shares, citing the potential impact of CAR Group's new Wallet offering for Webmotors on dealer growth in the second half of fiscal year 2025.
Citi's analysis projects a 1% and 2% increase in forecasted revenues for fiscal years 2025 and 2026, respectively, driven by the growth outlook for Webmotors and CAR Group's overall performance. However, the expected EBITDA has been slightly revised downward due to ongoing investments attributed to competitive pressures and strategic choices.
Despite this, Citi remains optimistic about CAR Group's future, expecting double-digit earnings growth over the medium term fueled by international and domestic business segments. The firm also noted that CAR Group's leverage is currently below target levels, potentially paving the way for mergers and acquisitions to accelerate growth in markets where the company already operates.
Overall, Citi's positive outlook for CAR Group emphasizes strategic investments and a strong growth trajectory in key business areas that are expected to support the company's financial performance in the years ahead.
Analysis: This article discusses Citi's updated outlook on CAR Group stock, highlighting the company's revenue guidance and future growth prospects. Investors may consider the Buy rating and raised price target as indicators of potential opportunities in the stock. Additionally, the mention of double-digit earnings growth and potential for mergers and acquisitions could attract investors looking for long-term growth potential in the automotive industry. It's important for investors to conduct their own research and consult with financial advisors before making investment decisions based on this information.