Broker RBC said Carsales’ AGM update is positive as the digital marketplace tips more growth in FY 2022 when including the impact of two acquisitions.
Carsales said it expects solid growth in adjusted revenue, EBITDA, and net profit excluding the acquisitions, with stronger growth expected over the second half as Australia cycles of out of lockdowns.
“We think the acquisition of a pure e-commerce B2B portal should provide good adjacencies to CAR’s private business although relatively small in size,” RBC said.
“While we expect further updates on the marketplace strategy which should be material for CAR’s medium- to longer-term earnings outlook.”
Carsales shares are down 1 per cent to $25.17 this morning.