Eagers Automotive Ltd (APX: APE)
Quick question. What would be your target buy in price for APE. We must be getting close. Charles
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Answer
Hi Charles,
We covered Eagers in detail last month here, at the time we were bullish ~$23.50 and the stocks since slipped another ~7% on fears around the Australian consumer having weighed on the whole Consumer Discretionary space.
As we discussed EV sales are accelerating higher and APE is arguably the single biggest corporate beneficiary of the new EV tailwind with their dealerships accounting for approximately 80% of all BYD sales in Australia. APE is positioned perfectly for a consumer keen to buy an EV, whether new or second hand via its easyauto123 network.
To specifically answer your question we believe it’s in an “Accumulation Zone” now but another foray under $20 cannot be ruled out if the RBA keeps hiking interest rates.
