Analysts raised the target price to 660p from 515p after the half-year numbers topped their expectations, putting the FTSE 100-listed group in a better position to drive post-pandemic revenue growth.
COVID-19 has accelerated the shift to online transitions for cars as well, with retailers having to seek a different short-term approach for closures, which is potentially translating into a long-term change.
The broker lowered the estimates for the year to March 2021, with revenue expected to come in at £264mln and underlying earnings (EBITDA) of £163mln.
They are expected to rise to £371mln and £267mln respectively in the following financial year.
“Site traffic is strong, indicating pent-up demand and potential longer-term shifts away from public transport – which will benefit the group in the short and longer term as the group shifts to facilitating online transactions,” analysts noted.
“As we enter a new lockdown and forecourts again close, the uncertainties around logistics have been ironed out and we see retailers better positioned to operate without physical forecourts via Auto Trader.”
Shares dipped 1% to 564.8p on Wednesday morning.