Citi upgrades Auto Trader to 'buy' from 'neutral'

(Sharecast News) - Citi upgraded Auto Trader to 'buy' from 'neutral' on Thursday and lifted the price target to 946p from 881p as it said it was in "pole position to outperform". "We consider the outlook for Online Classifieds in 2025 and expect more challenged macro trends to support outperformance in autos classifieds," the bank said.

Citi said its 'buy' rating on Auto Trader is driven by the fact the company is well-positioned to benefit from the current macro environment, as car shortages continue to drive demand, supporting car prices and used car dealers.

In addition, the bank sees potential upside from Auto Trader's expansion of Deal Builder and work to expand its product offering.

Finally, it said competition remains a "peripheral factor" relative to the property classifieds.

At 13125 GMT, the shares were up 1.1% at 785p.