Mobility Global (MBGL) is expected to see a "modest" pickup in organic growth in H2 as CARFAX adjusts its sales strategy and new products gain traction, RBC Capital Markets said in a note emailed Monday.

The company's full-year outlook implies H2 organic revenue growth of about 7.1%, up from roughly 6.8% in H1, with most of the improvement expected to come from CARFAX after management reversed a bundled dealer-sales approach that had lengthened sales cycles, the investment firm said.

CARFAX is also expected to benefit from new products, including Showroom and Homegrown, as well as its recent launch in Germany, the firm said, adding that B2B growth could be "weighed down" by macroeconomic uncertainty and softer transaction volumes in the near term.

Full-year adjusted earnings before interest, taxes, depreciation, and amortization margin guidance of about 40% at the midpoint assumes a step-down in H2 from about 42% in H1, reflecting seasonality, higher interest expense and costs tied to operating as a standalone company, according to the note.

RBC has a sector perform rating on Mobility Global, with a price target of $23.

Shares of Mobility Global were down 3.5% in Monday trading.

Price: 19.02, Change: -0.68, Percent Change: -3.48