2323 GMT [Dow Jones]--Times are tough for consumer stocks, but Jefferies thinks car dealer Eagers Automotive is well placed to weather the storm. It has tailwinds such as its semi-exclusive distribution arrangement with China's BYD in Australia. This partnership, coupled with rising sales of electric vehicles, are super-charging near-term earnings, analyst John Campbell says. But there are also headwinds. Interest rates are rising in Australia and new vehicle sales are weak in Canada. Jefferies raises its FY 2026 EPS forecast by 7%, and by 2% in each of the following two years. Eagers trades "at a 50% premium to global auto dealers but a 25% discount to our Australian Growth Industrials basket," Jefferies says. "We see the premium to the former as justified and the discount to the latter, an opportunity." (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

April 20, 2026 19:31 ET (23:31 GMT)

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