CAR Group Ltd (ASX: CAR) shares jumped almost 10% yesterday after the company released FY26 results.
The company has now seen its share price recover more than 24% since late July.
This is extremely positive, as CAR Group shares were down more than 20% in 2026 before the rebound.
The company delivers world leading technology and advertising solutions designed to make buying and selling a great experience, with wholly owned digital marketplace businesses in Australia
Image source: Getty Images
What did the company report?
As reported by The Motley Fool yesterday, the company reported FY26 revenue of $1,253 million, up 6%, and NPAT of $314 million, up 14% on the prior year.
Other results included:
- Reported revenue: $1,253 million, up 6% on the prior corresponding period
- Reported NPAT: $314 million, up 14% on prior year
- Reported EBITDA: $667 million, up 8%
- Proforma revenue: $1,253 million, up 12% on a constant currency basis
- Final dividend: 43.5 cents per share (30% franked), bringing total FY26 dividend to 86.0 cents per share, up 8%
- EBITDA to operating cash flow conversion of 100%.
Following yesterday's results and subsequent share price jump, investors may now be wondering if this is the start of a long-term rally.
A new report from Bell Potter following the results suggests there is still more upside for CAR Group shares.
What did Bell Potter say?
The FY26 results were broadly in line with Bell Potter's expectations and consensus, with adjusted EPS and the full-year dividend both rising 8% to 107.4cps and 86cps (30% franked).
The broker said the balance sheet remained healthy, with $326m of cash, $1.2bn net debt and leverage of 1.7x EBITDA, despite $306m of dividends and $202m of bolt-on acquisitions, while debt capacity was subsequently increased by $380m.
Margin pressure in North America and Asia is expected to continue as the ASX 200 company invests for market-share gains, but this should be offset by operating leverage in Australia and Latin America.
Healthy upside for CAR Group shares
Based on this guidance, the team at Bell Potter retained its buy recommendation on CAR Group shares.
The broker also retained its $34.60 price target.
From yesterday's closing price, this indicates upside potential of over 16%.
CAR's result and outlook reinforces our thesis of a preferred risk-adjusted earnings profile due to a geographically diversified network of auto and non-auto classifieds platforms, which generate cash flows to support growth investment and shareholder returns simultaneously.
CAR is proactively implementing AI solutions across its platforms and geographies on top of a technical eco-system integrated into Dealer management workflows, network effect and unique data sets.
