This S&P/ASX 200 Index (ASX: XJO) share doubled in value last year. Eagers Automotive Ltd (ASX: APE) may have moved more slowly this year, but in the first six weeks of 2026 the share price still climbed 6%.
At the time of writing, the ASX 200 share is trading at $25.93 apiece, a gain of 102% over 12 months.
The slowing pace has investors asking whether Eagers is gearing up for its next leg higher. Here's why this rocketing ASX 200 share still looks compelling.
Image source: Rivian Automotive
BYD as growth engine
A big driver of Eagers' success has been electric vehicles, particularly BYD. The ASX 200 share now operates roughly 80% of BYD dealerships in Australia, giving it unmatched exposure to one of the fastest-growing EV brands in the country.
Analysts point to Eagers' diversified earnings base as a key advantage. As the market normalises and interest-rate pressure eases, Eagers' scale and brand partnerships could see it outperform peers.
Eagers delivered a record half-year result in mid-2025 — and the numbers were hard to ignore. Revenue surged to $6.5 billion, up 18.9% year-on-year. Underlying operating profit before tax hit $197.7 million, while underlying EBITDA climbed to $297 million, up 11.6%.
On 19 February the $7 billion ASX 200 share will release its second half year results for 2025.
A bold step into North America
In October, the ASX 200 share announced a game-changing move, revealing the acquisition of a 65% stake in CanadaOne Auto, one of Canada's largest dealership groups.
The deal values CanadaOne at around $1.05 billion and marks Eagers' first expansion into North America. Once completed in Q1 2026 (pending approvals), Eagers will control 42 dealerships across multiple Canadian provinces.
Why does this matter? Canada's auto market is significantly larger than Australia's and typically delivers stronger margins. Analysts see the deal as strategically important. It gives Eagers geographic diversification and reduces reliance on domestic car sales cycles.
The acquisition is backed by a $452 million capital raise and a strategic placement with Mitsubishi Corporation, which already partners with Eagers through its Easyauto123 used-car business.
Built to weather the cycle
Eagers isn't just a new-car dealer — and that's a big plus.
The used-car operations, service and parts divisions, and independent retailer Easyauto123 provide recurring, higher-margin revenue streams that are far less cyclical. With new vehicle sales often the most volatile part of the industry, this diversification gives Eagers a natural buffer during downturns.
The result is a more resilient, cash-generative business than many investors realise.
What next for Eagers shares?
Despite the monster rally in the past year, analysts still see room to move.
TradingView data shows most brokers rate the ASX 200 share a hold or buy, with bullish forecasts stretching as high as $35.90. This points to 38% upside from current levels.
The average 12-month price target sits at $30.96, which still points to a potential 19% gain from here.
