Continuing the car theme from APE, the math is simple: more turnover in the auto market equals increased revenue for CAR. Subscribers know we like CAR but exited the stock on valuation grounds in December; the subsequent weakness has partly addressed this issue, with the stock having already retreated over 15% from its high. Earlier this month, CAR dropped the most since 2022 following a slight earnings miss, especially around the Australian digital vehicle marketplace provider’s US business outlook and higher-than-expected capital expenditure – issues not resolved by Australians buying more cars.
- We are considering re-entering CAR, ideally around 6-8% lower, where the valuation will be back to better levels.
MM likes CAR around the $35 area
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