Auto Trader Group plc : A medium term support level to take advantage of
| Entry price | Target | Stop-loss | Potential |
|---|
|
GBX 707.2 |
GBX 762 |
GBX 680 |
+7.75% |
|---|
Pursuant to the correction that has taken place in recent weeks with respect to the shares in Auto Trader Group plc, further downside risk now appears limited by close and important technical support levels at 691.8 GBX.
Summary● The company has strong fundamentals. More than 70% of companies have a lower mix of growth, profitability, debt and visibility.
● The company's EBITDA/Sales ratio is relatively high and results in high margins before depreciation, amortization and taxes.
● Margins returned by the company are among the highest on the stock exchange list. Its core activity clears big profits.
● Thanks to a sound financial situation, the firm has significant leeway for investment.
● The group usually releases upbeat results with huge surprise rates.
● The firm trades with high earnings multiples: 25.93 times its 2024 earnings per share.
● The company's "enterprise value to sales" ratio is among the highest in the world.
● In relation to the value of its tangible assets, the company's valuation appears relatively high.
● The firm pays small or no dividend to shareholders. For that reason, it is not a yield company.
● Over the past twelve months, analysts' consensus has been significantly revised downwards.
The content herein constitutes a general investment recommendation, prepared in accordance with provisions aimed at preventing market abuse by Surperformance, the publisher of MarketScreener.com. More specifically, this recommendation is based on factual elements and expresses a sincere, complete, and balanced opinion. It relies on internal or external data, considered reliable as of the date of their release. Nevertheless, this information, and the resulting recommendation, may contain inaccuracies, errors, or omissions, for which Surperformance cannot be held responsible. This recommendation, which in no way constitutes investment advice, may not be suitable for all investor profiles. The reader acknowledges and accepts that any investment in a financial instrument involves risks, for which they assume full responsibility, without recourse against Surperformance. Surperformance commits to disclosing any conflict of interest that may affect the objectivity of its recommendations.
AUTO TRADER GROUP PLC 
