CAR Group Limited closed Tuesday's session at A$27.19, marking a 1% increase, as the online automotive classifieds company sustained momentum following its half-year results announcement. The stock traded between A$26.87 and A$28.16 during the day.
The company reported a 13% increase in pro forma revenue to A$626 million for the six months ended December 31, measured in constant currency terms. Pro forma EBITDA grew 12% to A$339 million, while net profit after tax jumped 16% to A$143 million. CAR Group declared an interim dividend of 42.5 Australian cents per share, representing a 10% increase, and maintained its double-digit growth guidance for fiscal year 2026.
Despite the solid financial performance, several brokerages adopted a cautious stance. Morgan Stanley and Jarden maintained Overweight ratings but reduced their price targets, while E&P kept a Neutral rating while also lowering forecasts. Analysts highlighted foreign exchange headwinds and questions surrounding artificial intelligence implementation as key concerns.
Citi analyst Siraj Ahmed described the half-year figures as "solid," particularly noting strength in the transaction intelligence segment. This business unit, which provides software, data, and services supporting listings, is closely watched by investors for margin indicators that could offset pressure on the core classifieds operations.
Market observers are monitoring whether CAR Group can sustain growth amid rising expenses and volatility in technology stocks. The company faces potential headwinds including slower advertising sales, tighter dealer budgets, and currency fluctuations. Management has emphasized that AI represents both an opportunity for product development and a potential disruption risk to traditional business models.
The broader ASX 200 edged higher late in the trading day, supported by technology stocks, though major banks softened ahead of earnings reports. CAR Group's performance is being viewed alongside other platform stocks as a barometer for sentiment toward Australia's technology sector recovery.
Investor attention now turns to broker commentary and the stock's ability to maintain its post-results trading range. The company's interim dividend goes ex-entitlement on March 13, with payment scheduled for April 13.