Deutsche Bank fired off a Catalyst Call Buy Idea on Auto Trader Group ( OTCPK:ATDRY ) on Thursday morning.
Analyst Silvia Cuneo and team expect Auto Trader to continue outperforming the STOXX 600 Tech Index in the short term.
"Auto Trader is the UK’s largest digital automotive marketplace and its business could be resilient in a macro downturn. In a scenario of weaker consumer spending translating into lower demand for cars, the used car market should be less cyclical than the new car market. Auto Trader mostly generates revenues by offering B2B services to used car retailers."
The increasing competitive pressures with car retailers is expected to support the uptake of Auto Trader's products to drive sales.
On a valuation check, Auto Trader is noted to trade lower than peers and below its historic average at a 25X PE multiple.
See all the valuation metrics on Auto Trader.
For further details see:
Auto Trader is a catalyst call buy at Deutsche Bank