Deutsche Bank Capital maintains Auto Trader Group plc. with a Buy rating and lowers the target price to GBX720 from GBX800 on the company’s stock.

Based on the Auto Trader Group plc stock forecasts from 6 analysts, the average analyst target price for Auto Trader Group plc is GBX 669.40 over the next 12 months. Auto Trader Group plc’s average analyst rating is Hold . Stock Target Advisor’s own stock analysis of Auto Trader Group plc is Slightly Bearish, which is based on 5 positive signals and 7 negative signals. At the last closing, Auto Trader Group plc’s stock price was GBX 556.60. Auto Trader Group plc’s stock price has changed by -0.11% over the past week, -13.68% over the past month and +0.87% over the last year.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

What we don’t like:

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Below median total returns

The company has under performed its peers on annual average total returns in the past 5 years.

Overpriced compared to earnings

The stock is trading high compared to its peers on a price to earning basis and is above the sector median.

Overpriced compared to book value

The stock is trading high compared to its peers median on a price to book value basis.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.