Car dealer Eagers Automotive's trading update was very positive regarding new orders. However, Jefferies says the return of vehicle-supply constraints took the gloss off it. Analyst John Campbell says the supply crunch mainly involves Toyota vehicles and cars that don't run on traditional motor fuels. "We were surprised on the former but not the latter," Jefferies says. Australian motorists are buying electric vehicles and other clean-energy cars at pace as fuel prices surge, straining the retail-supply chain. "Whilst Eagers spoke positively about a 2H supply recovery, we've taken the cautious approach of cutting FY26 pretax profits by 3%," Jefferies says. It retains a buy call and A$30.50/share price target on Eagers, which ended Wednesday at A$22.76. (david.winning@wsj.com; @dwinningWSJ)

(END) Dow Jones Newswires

May 27, 2026 19:11 ET (23:11 GMT)

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