Are you invested in ASX auto-related stocks, CAR Group Ltd (ASX: CAR), Bapcor Ltd (ASX: BAP), or ARB Corporation Ltd (ASX: ARB)?
In this article, we reveal the views of two market analysts on which two auto stocks are a buy and which one is a sell.
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Analysts' verdict on 3 ASX auto stocks
Car Group shares
Car Group operates Australia's largest online auto classifieds platform, carsales.com.au.
The company has international exposure through Webmotors in Brazil and Trader Interactive in the US.
Car shares closed at $37.26 on Friday, up 6% over the past 12 months.
Christopher Watt from Bell Potter has a buy rating on this ASX auto stock.
Courtesy The Bull, Watt explains:
This online vehicle marketplace continues to demonstrate strong fundamentals, with resilient recreational vehicle unit sales in the US.
Despite cautious dealer sentiment, demand remains stable, and the business benefits from diversified geographical exposure …
The business is well positioned for growth despite cyclical industry movements.
Reported revenue of $579 million in the first half of fiscal year 2025 was up 9 per cent on the prior corresponding period.
Bapcor shares
Bapcor sells aftermarket auto parts and accessories and offers car servicing.
It has operations in more than 1,000 locations in Australia, New Zealand, and Thailand.
Bapcor shares closed at $5.24 on Friday, up 1% over the past 12 months.
Jabin Hallihan from Family Financial Solutions says this ASX auto stock is going cheap, trading well below his valuation of $7.30.
Hallihan said:
Bapcor's exposure to the auto segment offers defensive growth.
Its revenue drivers are tied to Australia's expanding and ageing car fleet, rather than volatile new car volumes.
Improving consumer sentiment and potentially lower interest rates are expected to lift spending, so Bapcor's diversified channels are well positioned to deliver upside.
The shares are undervalued, in our view.
ARB shares
ARB designs, manufactures, and distributes 4-wheel drive accessories for the Australian and international markets.
The ARB share price finished Friday's session at $34.48, down 13% over the past year.
This is well above Hallihan's fair value estimation of $27 per share for this ASX auto stock.
Hallihan said:
ARB's growth prospects are linked to big ticket consumer spending.
With shares trading above our fair value estimate of $27, we believe investors are overestimating the company's scale in international markets.
Weaker macroeconomic conditions and slowing momentum suggest ARB faces downside risks, in our view.
Trimming exposure now may enable re-entry at a more favourable valuation later.
3 auto shares vs. ASX 200
All three of these auto-related companies are underperforming the benchmark S&P/ASX 200 Index (ASX: XJO).
The ASX 200 is up 7% over the past 12 months.
