On Tuesday, RBC Capital Markets adjusted its outlook on CAR Group (CAR:AU) (OTC: CSXXY) shares, increasing the price target to AUD38.00 from AUD35.50. The firm maintained its Outperform rating on the stock, signaling confidence in the company's financial performance.
CAR Group has reported a solid fiscal year 2024, with a 17% increase in both revenue and EBITDA. The company anticipates continuing this upward trajectory in fiscal year 2025, expecting "good" revenue and EBITDA growth on a constant currency basis, alongside steady EBITDA margins.
The company's prediction of year-over-year growth across all of its business segments is particularly notable. Although smaller than other segments, the Latin American (LATAM) region is projected to experience "Strong" growth, contributing to a more diversified earnings profile for the group in FY25.
RBC Capital Markets' positive stance is bolstered by CAR Group's defensive earnings growth narrative, supported by a consensus forecast of a 41% increase in EBITDA over three years. The firm's continued endorsement with an Outperform rating reflects its approval of the company's financial health and market position.
The updated price target and favorable outlook from RBC Capital Markets come as CAR Group sets its sights on sustained growth and earnings diversification in the upcoming fiscal year.
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