(Sharecast News) - Analysts at Deutsche Bank lowered their target price on automotive classified advertising business Auto Trader from 800.0p to 720.0p on Thursday ahead of the group's full-year results on 26 May.
Deutsche Bank expects "a strong end to a transformative year" from Auto Trader, which it noted started 2022 "strongly", with better than expected full-year guidance that was again upgraded with its interim results.
The German bank, which reiterated its 'buy' rating on the stock, highlighted that this was when consumer engagement and customer numbers reached record levels, while product uptake "positively surprised" despite car supply challenges.
"We think the monetisation of new performance products continued driving strong ARPR growth in the second half of the year, and expect to hear more about Auto Trader's progress in monetising more of the online car buying journey," said the analysts.
However, DB stated that after it had run scenarios on Auto Trader's recent acquisition of Autorama, it saw fit to hit the stock with a 10% lower target price that it said offers around 30% upside.
Reporting by Iain Gilbert at Sharecast.com
Auto Trader (AUTO)
