CAR Group shares reverse losses following CEO transition announcement
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The news: CAR Group’s shares more than recuperated losses taken on Thursday, after the online car marketplace company announced that chief executive Cameron McIntyre is stepping down, as UBS analysts lifted their target price.
The numbers: Shares in CAR Group had lifted 3.7% to $37.69 at 3:13pm AEST, which is higher than the 16 July close price of $37.45.
After it was announced on 17 July that chief financial officer William Elliott would step into the top job in mid-August the stock finished 2.9% lower.
The context: Analysts noted on Thursday that while investors could be disappointed by the departure of the well-liked McIntyre, appointing Elliot as his replacement was a sound move.
On Thursday evening, a UBS analyst note also flagged that financial year 2025 guidance updates, released alongside the leadership transition announcement, were slightly better than consensus.
Expected revenue and adjusted net profit after tax for FY25 were both 1% better than consensus.
This resulted in an upgrade in UBS' 12-month target price in the stock from $45 to $46.
The source: UBS research
