Yesterday, in similar fashion to Goodman, Eagers delivered a trading update that saw the stock sharply sold-off before reversing higher (+1.8%) as analysts delved into the details – the stock recovered ~17% from its intra-day spike low under $20. The market’s “sell first, and ask questions later” recent characteristic may have caught a few short-term traders this week.
The stock initially dropped ~15% on the news that the company is facing supply issues through the first half, with orders exceeding deliveries by 29%; to a smaller degree, a nice problem to have. However, the company said two months of contribution from CanadaOne Auto should help position them to deliver a record first half on a consolidated basis, despite ongoing supply constraints creating some near-term volatility. Management also struck a confident tone on the second half, supported by improving vehicle deliveries, a growing order book, strong demand for new energy vehicles and a full-half contribution from CanadaOne.
- Eagers said it expects a stronger second half, supported by improving vehicle supply through its expanded Toyota partnership following a heavily supply-constrained first half.
The company also expects additional momentum from recent acquisitions and a full-half contribution from CanadaOne, while its order book has surged 70% since December 2025. Importantly, the group’s used vehicle operations continue performing strongly, with profit before tax from easyauto123 and Carlins rising 40% year-on-year over the first four months of 2026. Management expects first-half underlying profit across Australia and New Zealand to be in line with, or slightly ahead of, the prior corresponding period.
- We can initially see Eagers testing the $25 resistance area, but a test of this year’s high, close to $30, wouldn’t surprise.
MM is bullish towards APE around the $22.75 area
Add To Hit List
