Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks IPOs and placings
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Broker tips: Auto Trader, Future
(Sharecast News) - Analysts at Deutsche Bank lowered their target price on automotive classified advertising business Auto Trader from 800.0p to 720.0p on Thursday ahead of the group's full-year results on 26 May. Deutsche Bank expects "a strong end to a transformative year" from Auto Trader, which it noted started 2022 "strongly", with better than expected full-year guidance that was again upgraded with its interim results.
The German bank, which reiterated its 'buy' rating on the stock, highlighted that this was when consumer engagement and customer numbers reached record levels, while product uptake "positively surprised" despite car supply challenges.
"We think the monetisation of new performance products continued driving strong ARPR growth in the second half of the year, and expect to hear more about Auto Trader's progress in monetising more of the online car buying journey," said the analysts.
However, DB stated that after it had run scenarios on Auto Trader's recent acquisition of Autorama, it saw fit to hit the stock with a 10% lower target price that it said offers around 30% upside.
Analysts at Berenberg slashed their target price on media company Future from 5,225.0p to 3,600.0p on Thursday, stating it was currently "a mispriced share".
Berenberg said despite modestly upgrading guidance at its interim results, Future's shares fell by roughly 6% on Wednesday.
While the analysts acknowledged that both weakening consumer sentiment and rising inflation present risks, they believe Future's results prove the growing value of its platform - which leaves it better positioned than peers to absorb these headwinds.
The German bank, which reiterated its 'buy' rating on the stock, continues to expect Future to at least deliver on full-year guidance in 2022 and also considers the shares to be "materially undervalued" on 11.7x P/E and a 9% FCF yield, almost 40% below its five-year average valuation.
However, Berenberg lowered its price target on the stock to reflect lower peer multiples and the removal of its upside scenario weighting given macro headwinds.
"Our new price target implies a FY 2022 P/E of 20x, in line with Future's five-year average multiple."
Reporting by Iain Gilbert at Sharecast.com
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.
