CAR Group (ASX:CAR) delivered a "good result" for fiscal 2026, with adjusted earnings before interest, taxes, depreciation, and amortization and net profit after tax both in line with consensus forecasts, and offered guidance that was better than feared, Jefferies said in a Monday note.
The company logged AU$1.076 in adjusted EPS for the fiscal year, compared with AU$0.998 a year ago and slightly higher than the AU$1.071 forecast of analysts polled by FactSet.
The biggest surprise is CAR Group still expecting double-digit revenue growth in North America, versus consensus forecasts of 9%, despite a downturn in the recreational vehicle and trucks markets, Jefferies said.
It added that the company's cash conversion is "strong" and the capitalization rate of research and development costs remains consistent.
"We expect a positive share price reaction today, although we are conscious of the MSCI rebalancing announcement, expected on Aug. 12," the investment firm said.
It maintained a buy rating on CAR Group with a price target of AU$32.30.
The company's shares rose 9% in recent Monday trade.