Numis had downgraded Motorpoint Group PLC (LON:MOTR) to ‘Add’ from ‘Buy’ but stayed positive on the stock following a strong set of final results.
Analysts at the broker said: “Motorpoint has reported FY PBT of £20.8m, slightly ahead of expectations. With a leading customer service proposition, strong cash generation, and a medium term premium growth outlook underpinned by roll-out and maturity, the business continues to offer clear attractions to investors.”
READ: Motorpoint exceeds its own expectations as revenue jumps in full-year results
The broker added that it was leaving its forecasts for the used car marketplace unchanged, saying its expected the group’s “premium growth profile to continue into the medium term”.
Numsi added: “The shares have had a strong run (+78% over 12m) and now trade on 13x FY19 PE but we see more to go for.”
In its final results for the year, Motorpoint reported revenue growth of 20.6% to £991.2mln, a higher growth rate than the 18% it forecast in a trading update in April, while pre-tax profits climbed 70.9% to £20mln.
The group also upped its final dividend to 4.6p per share from 2.9p last year, increasing the full-year dividend 57.1% to 6.6p.
In mid-morning trading Tuesday, Motorpoint shares were down 8% at 240p.