13/12/2024 09:07

CAR Group (CAR) $38.47

We exited CAR on valuation grounds, a dangerous pastime in 2024. Even after retreating 10%, it's trading well above its average multiple of the last five years, closer to 30.9x, making the risk/reward unattractive to MM around current levels.

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06/12/2024 09:38

Active Growth Portfolio – Amendments

We are making several changes to the Active Growth Portfolio today

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28/11/2024 09:54

CAR Group Ltd (CAR) $42.42

Earlier this month, we discussed taking profit on our CAR position on valuation grounds. The math is simple: we like the business, but it's become increasingly expensive as it roars through $40.

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12/11/2024 09:27

CAR Group (CAR) $39.92

We have been targeting the $40 area for CAR since we went long in April and we see no reason to change our stance. It’s a solid company, growing nicely, especially through international expansion, but it’s now trading well above its average P/E of the last 5 years. In simple terms, we believe there is a lot of good news already built into its share price around $40.

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08/11/2024 09:15

CAR Group Ltd (CAR) $39.05

CAR surrendered its early gains on Thursday to finish marginally lower. CAR group has been flagged as one ASX stock that will struggle under a Trump Administration. Sentiment wasn't helped by stocks of foreign automakers falling sharply Wednesday amid concerns the U.S. will hike tariffs on imported vehicles under President-elect Donald Trump.

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17/09/2024 09:20

CAR Group Ltd (CAR) v REA Group Ltd (REA)

CAR and REA have performed strongly through 2024, gaining +18.3% and +12%, respectively. The primary reason CAR is currently outperforming is REA’s ~$11bn bid for UK-based Rightmove (RMV LN). As is the norm, the bid has already been rejected, and the market is now considering REA’s next move—the stock's pulled back almost 12% since the announcement.

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03/09/2024 09:56

CAR Group Ltd (CAR) $37.45

Digital auto marketplace CAR has rallied over 20% in 2024, although we are mindful that it reached our target area when we went long in April. Unlike many, CAR is having success expanding internationally, and as the proportion of their earnings comes from offshore, their overall growth rate will accelerate. If we were looking to buy today, we’d be targeting the $32-33 area.

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27/08/2024 09:58

CAR Group (CAR) $38.34

CAR rallied another +2.9% on Monday, also posting a fresh all-time high. The stock's dividend in mid-September isn’t a major factor, with a yield of just over 2%. We wouldn’t consider adding to our 4% position in CAR but anticipate a further 5-10% upside before considering taking some profit.

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13/08/2024 09:39

CAR Group (CAR) $35.14

Following its solid/inline FY24 result on Monday, CAR rallied +4.5%; as we said yesterday, we believe their flagged outlook for ‘good growth’, which MM believes, could prove conservative.  When we look at CAR’s relative valuation over the last five years, it may be on the expensive side of the ledger, but it's nowhere near stretched, i.e. it was trading on a higher valuation earlier in 2024 and especially in 2021.

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12/08/2024 17:00

CAR Group (CAR) $35.14

CAR +4.46%: A solid/inline FY24 result today, and while they stuck to their usual script around the outlook for ‘good growth’ we got the sense they could actually deliver ‘very good’ growth given how well the international businesses are doing, and the better outcome from the dealer network than feared in Australia.

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