Eagers Automotive Ltd (ASX: APE) shares have delivered some benchmark-smashing gains over the past year.
In midday trade today, shares in the S&P/ASX 200 Index (ASX: XJO) automotive retail group are up 2.2%, changing hands for $17.93 apiece. The ASX 200 is up 0.1% at this same time.
As for those longer-term benchmark-smashing gains, on 31 May 2024, you could have picked up Eagers Automotive shares for $10.11 apiece.
Meaning the stock has gained a whopping 77.4% over 12 months, racing ahead of the 9.8% one-year gains posted by the ASX 200.
And that's not including the 74 cents a share in fully franked dividends the ASX 200 stock paid eligible shareholders over the year. At the current share price, Eagers Automotive stock trades on a fully franked trailing dividend yield of 4.1%.
If we add those dividends back in, then the accumulated value of Eagers stock is up an even more impressive 84.7% in a year. With potential tax benefits from those franking credits.
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What's been boosting the ASX 200 automotive retailer?
Eagers Automotive shares got a big lift following the release of the company's full calendar year 2024 results on 27 February.
Highlights included record full-year revenue of $11.2 billion, up 13.6% from 2023. And while underlying operating profit before tax of $371 million was down 14.3% year on year, management still declared a fully franked final dividend of 50 cents per share, matching the record final dividend paid out in 2023.
And speaking at the company's annual general meeting (AGM) yesterday, Eagers CEO Keith Thornton said he was particularly optimistic about the outlook for the second half of 2025.
Thornton said:
Overall, we are pleased to report the business performing ahead of the expectations we communicated in February. We continue to believe the second half will benefit from tailwinds associated with improving industry conditions, interest rate relief, and without some of the other disruptions experienced in the first half.
Which brings us back to our headline question.
After a big year of gains, just how much more upside does Macquarie Group Ltd (ASX: MQG) forecast for Eagers Automotive shares?
What's Macquarie's price target for Eagers Automotive shares?
In a research report released this morning. Macquarie's analyst said they were pleased that Eager's management had reaffirmed its 2025 calendar year revenue target, guiding revenue growth of more than $1 billion.
The broker retained its outperform rating on the ASX 200 stock, stating:
We expect APE's larger-than-typical 2H skew should be attainable, with rate cuts likely supportive. The LT margin outlook has stabilised, and we believe material upside exists to outer-year margins if APE achieves its +190bp medium-term expansion target.
Macquarie increased its 12-month price target for Eagers Automotive shares by 24% to $20.35.
That represents a potential upside of more than 13% from current levels, not including those future dividend payments.
