RBC Capital Markets lifted its price target on shares of Auto Trader on Friday to 610p from 560p following the company’s “strong” set of results a day earlier.
RBC said the results give it confidence in Auto Trader’s strong market position and pricing power.
“The development of its products, aimed to further digitalise the car buying journey, is also encouraging,” the bank said.
“However, we believe this is fairly reflected in the share price, trading at a 10% premium to its historical average, on FY22 EV/EBITDA.”
It maintained its ‘sector perform’ rating on the stock.
