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Investing.com - RBC Capital upgraded CAR Group (ASX:CAR) (OTC:CSXXY) from Sector Perform to Outperform and set a price target of AUD41.00.
The upgrade follows what RBC Capital described as "reasonably benign" financial results from the company, with fiscal year 2025 pre-guided figures and fiscal year 2026 guidance largely aligning with consensus expectations.
RBC Capital cited "greater earnings confidence next year" as a key factor in its more constructive view on CAR Group, noting that the company trades on a multiple in line with its 5-year historical average.
The investment firm expressed particular appreciation for CAR Group’s "compounding double-digit earnings outlook" as a compelling reason for the rating change.
RBC Capital also highlighted management’s ability to generate double-digit growth in fiscal year 2025 despite challenging macroeconomic conditions in key markets including the United States and Brazil.
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