Auto Trader Group plc downgraded to ‘neutral’ by UBS over slow
Progress on transitioning from a marketing to a transaction platform could not be announced for another year
() was downgraded to ‘neutral’ from ‘buy’ by UBS as the firm now needs to execute on its opportunity to transition from a marketing to a transaction platform.
However analysts said progress on these products are unlikely to be announced for another year, and there are risks if the UK enters a second lockdown period or if macro trends are worse than expected.
READ: Auto Trader skids slightly, predicts near-term revenue decline as car market recovers from coronavirus impact
The ‘buy’ recommendation was based on short-term catalysts such as the quick reopening of car dealerships, used car prices holding steady, a small number of forecourt closures during lockdown and a return toward full Auto Trader pricing.
The FTSE 100 stock has jumped 40% since the April trough, while the investment bank bumped up the share price to 525p from 510p.
Shares were flat at 532p on Monday late morning.
Read More: Auto Trader Group plc downgraded to ‘neutral’ by UBS over slow