according to Fosters.....Carsales.com (CRZ, $9.73, Mkt Cap...

according to Fosters.....

Carsales.com (CRZ, $9.73, Mkt Cap $2,313M). Industry player suggests auto sales back to normal. Trading Buy.

•Last week saw McMillan Shakespeare Group (MMS) state that trading is now approaching a “business as usual” footing, as well as greater certainty around business, following the change in Federal Government.

•The most recent car sales data for Australia saw a decline for the month of October, in which there was no doubt that concerns over the FBT uncertainty had spilled over into that month. This was reflected by the negative growth in business and government sales offsetting private sales.

•However we expect more positive momentum for auto sales generally to follow through from November onwards. This will be generally positive for CRZ, which had commented on relatively soft trading to date at its AGM in October.

•Additionally, the company is rolling out new initiatives to bolster its online verticals and strategy. These include, amongst other things, new website features, offerings, and search engine.

•The stock remains inexpensive vs its peers at 23x FY14 earnings vs 37x (REA) and 28x (SEK).

•We reiterate CRZ as a Trading Buy.

http://www.fostock.com.au/announcements/carsales-com-crz-asx-1