RBC Capital Markets lifts Auto Trader price target

RBC Capital Markets upped its price target on Auto Trader to 670p from 610p on Friday after the company’s results a day earlier.

"We view management's guidance for 10% ARPR growth as achievable, given the encouraging momentum of its AT Connect solution as well as the successful pricing event in April," RBC said.

In addition, it said ongoing strong consumer demand and elevated used car prices should continue to be supportive for car dealers' spending power.

"However, supply constraint should limit the pace of volume recovery at Autorama, placing our forecasts for this segment below Street expectations which keeps us from being more constructive."

RBC rates the shares at ‘sector perform’.