Autosports Gets New Bull as Deals Look Appealing -- Market Talk

Dow Jones
2025/10/23

2338 GMT - Luxury car retailer Autosports's deal hunger lures UBS as a bull. Analyst Tim Piper says Autosports could fund deals that contribute around A$250 million of annual revenue from its balance sheet. Doing so could boost EPS by 6-7% using a deal multiple of 5-7X pretax profit. "With greater value now in the share price, we estimate larger, equity funded accretive M&A is also possible," UBS says. Autosports's share price is currently trading on a multiple of 10X pretax profit versus past deals at 6X. Autosports could potentially do deals that contribute some A$1 billion of revenue. "We think vendor availability is sufficient to achieve these M&A targets given high dealer market fragmentation and Autosports's recent track record of acquiring more than A$800 million of revenue since FY23," UBS says. (david.winning@wsj.com; @dwinningWSJ)

 

(END) Dow Jones Newswires

October 22, 2025 19:38 ET (23:38 GMT)

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