Shares of Auto Trader Group (LON: AUTO) edged higher Wednesday, reclaiming some of its previous session’s losses following a downgrade by JPMorgan.
On Tuesday, JPMorgan analyst Lara Simpson cut the rating of Auto Trader Group to Underweight from Neutral with a new price target of 555p, down from 630p per share.
The analyst told investors in a research note that easing momentum in the core Auto Trader business, a lack of financial bearing from the company’s digital retailing initiatives, and an “unattractive valuation” were the reasons for the downgrade.
On Tuesday, AUTO closed the session down 2.34% before closing up 1% on Wednesday. So far this year, AUTO has gained 23.26%, currently trading around the 637p mark.
According to TipRanks, two analysts currently have a Buy rating on AUTO shares, with five assigning the stock a Hold rating and one a Sell rating. The average price target is 636p.
By Sam Boughedda