Shares in Eagers Automotive Ltd (ASX: APE) have had a strong run in 2025. The ASX 200 stock has surged 122% this year, but has run into a roadblock of late by falling 17.3% in the past month.
The shares trade hands for $26.32 apiece at the time of writing.
Here are 3 reasons why the ASX 200 stock looks attractive today.
Fast-growing BYD dealerships
In mid-2025, Eagers delivered record half-year results. Revenue hit $6.5 billion, up 18.9% from a year earlier, while underlying operating profit before tax rose to $197.7 million, and underlying EBITDA reached $296.7 million, growing 11.6%.
That performance reflected strong demand across new vehicles, used cars, and service and parts divisions. The fast-growing Chinese electric vehicle brand, BYD, plays a significant role in Eagers' success. The ASX 200 stock operates around 80% of the dealerships that sell BYD cars in Australia.
Analysts say Eagers' diversified business model shows that it can outperform even when some segments slow. As the Australian market normalises and interest rate pressures ease, Eagers may benefit disproportionately thanks to its scale and brand partnerships.
Transformative international expansion
Eagers announced in early October that it would acquire a 65% stake in CanadaOne Auto, one of Canada's largest dealership groups. The deal values CanadaOne at roughly $1.05 billion and marks the first move by Australia's largest car retailer into North America.
The acquisition is scheduled to be completed in Q1 2026, subject to regulatory approvals. On completion, Eagers will indirectly own the majority of 42 CanadaOne dealerships across several Canadian provinces.
Industry analysts see this as a "strategically significant step". The new vehicle market in Canada is way larger than the Australian one, and margins are generally stronger. The CanadaOne deal offers the ASX 200 stock an opportunity to diversify revenue and reduce its reliance on domestic sales cycles.
Additionally, the deal is backed by a comprehensive capital raise of $452 million, plus a strategic placement with Mitsubishi Corporation, which also invests in Eagers' used-car business, Easyauto123.
Resilience beyond new-car cycles
One of Eagers' strengths is how its business spans beyond new-car sales. Its used-car operations, service and parts divisions, and independent used-car retailer Easyauto123 provide recurring, higher-margin revenue that is less sensitive to economic cycles.
With new cars often the most cyclical part of automotive retail, Eagers' broad footprint across segments offers a built-in buffer during downturns. That diversification makes it more of a steady, cash-flow-generating business than a pure new-car dealer.
What next for the ASX 200 stock?
Analysts are also positive on the outlook for the car share. It looks like even after this year's share price rally, any stock purchased right now can still benefit from a robust upside.
TradingView data shows that most analysts recommend a hold or (strong) buy. Some expect the ASX 200 stock to climb as high as $35.90, which implies a 36% upside at the time of writing.
However, the average share price target for the next 12 months is $30.74. That still suggests a possible gain of almost 17%.
