Carsales – Update

Carsales.Com is under Algo Engine sell conditions and is not currently in our portfolio.

We highlight the recent announcement where Carsales will acquire a 49% stake in a US marketplace business for A$797m. The acquisition is mainly funded with a A$600m equity raising.

We expect 5 – 10% revenue growth and EBIT increasing from $230m to $270m in FY22. This supports a forward dividend yield of 2.6%.

Carsales – Up 10%+

Carsales.Com is under Algo Engine buy conditions and is a current holding in our model portfolio.

Accumulate.

8/4/21

Carsales.com is now up 10%+ from the entry point and momentum based investors may choose to stick with the trade as long as it remains above the 10 day average.