Auto Trader Group (LON: AUTO) shares are continuing to climb Tuesday, up 0.35%, following yesterday's upgrade by Barclays.
YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.
Auto Trader shares closed Monday's session up over 2% after Barclays analyst Andrew Rose upgraded the stock to Overweight from Equal Weight with a 725p price target.
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YOUR CAPITAL IS AT RISK. 68% OF RETAIL CFD ACCOUNTS LOSE MONEY
Rose told investors in a research note that the backdrop for European internet stocks is looking clearer in 2023 after a 2022 that was “not a good vintage.” In addition, Barclays said it has confidence in Auto Trader's growth.
Despite macroeconomic uncertainty, the used car market has managed to shrug off fears of weakening demand in January. Car Dealer Magazine reported that January “is proving to be a solid indication that 2023 could be a ‘very good year’ for the industry,” with demand levels remaining elevated.
Earlier this month, Auto Trader was upgraded to Buy from Neutral at Goldman Sachs, with analyst Lisa Yang lifting the firm's price target on the stock to 749p from 644p as part of a broader research note on European Internet and Media names.
Goldman Sachs believes Auto Trader will benefit from strong product-driven ARPD growth and a recovery in stock, resilience in its predominantly subscription-based core business model, and the opportunity to tap into transactions through the roll-out of Deal Builder.
Out of 12 analysts, four have a Buy rating, six have a Hold rating, and two have a Sell rating on AutoTrader shares, according to Tipranks. The average price target is 639p, representing a potential 2.6% upside from current levels.
YOUR CAPITAL IS AT RISK. 81% OF RETAIL CFD ACCOUNTS LOSE MONEY.