Deutsche Bank has nudged its price target on Auto Trader Group PLC (LSE:AUTO) down to 816p from 850p ahead of the online car marketplace's full-year results, while maintaining its buy rating on shares that last closed at 464.80p.
Analyst Gareth Davies said changes to 2026 estimates are minor, with adjusted earnings per share edging higher on a lower share count following more than £270 million of buybacks undertaken in the second half, which had not been factored into previous forecasts.
The broker models average dealer numbers for the full year of 13,970, slightly below the 14,080 seen in the first half, with average revenue per retailer of £3,025, producing total trade revenue of £537.7 million and group revenue of £625.8 million, up just over 4%.
Deutsche Bank forecasts adjusted operating profit of £412 million and adjusted diluted earnings per share of 36p, with net debt expected to end the period at around 0.4 times EBITDA following the accelerated buyback programme.
Key areas of focus at the results will include Deal Builder, dealer sentiment and a further update on artificial intelligence strategy.