CAR Group Ltd
CAR: XASX (AUS)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
A$95.00 | Yrhpww | Dfsybbrp |
Carsales.com Remains Undervalued Despite Fair Value Estimate Reduction
We have cut our earnings forecasts for narrow-moat-rated Carsales.com and now expect fiscal 2020 underlying NPAT to fall by 22% to AUD 101 million, versus our previous 4% growth forecast. Although Carsales.com’s first-half result was impressive, the earnings impact in the second half of fiscal 2020 and early fiscal 2021 from the coronavirus-related economic downturn is likely to be severe and we expect second half fiscal 2020 underlying NPAT to be 37% below the previous corresponding period, or pcp.