Street Calls of the Week
Investing.com - RBC Capital initiated coverage on Eagers Automotive Ltd (ASX:APE) with a Sector Perform rating and a price target of AUD32.00.
The firm identified Eagers Automotive as Australia’s largest automotive retailer, noting the company is positioned to benefit from improving domestic conditions and a recovery in vehicle turnover.
RBC Capital highlighted the company’s Canadian expansion as an additional growth driver, complementing its established Australian operations.
The investment bank cited Eagers Automotive’s scale, brand breadth, and disciplined reinvestment approach as key advantages supporting its long-term growth prospects.
Despite these positive factors, RBC Capital indicated that the current valuation already reflects these strengths, resulting in what the firm described as a balanced risk-reward profile at current price levels.
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