Eagers Automotive, REA Group, National Australia Bank: Buy, sell, or hold?

Résumé détaillé

The leader of this pack might surprise. The post Eagers Automotive, REA Group, National Australia Bank: Buy, sell, or hold? appeared first on The Motley Fool Australia.

It's a trying time in the Australian economy, which will impact all three of the companies I'm looking at today.

One is expected to weather that storm better than the other two, and is racking up some record numbers, and with that, some ticks from the analysts.

You would think a vehicle retailer would be doing it tough at the moment, what with the price of petrol shooting higher as a result of the conflict in the Middle East, but Eagers is defying that thesis.

One reason is that the company has cornered a 31% share of the market in plug-in electric vehicles, according to the company's trading update on 5 November, with a dominant position in BYD sales.

The Eagers trading update starts by emphasising how difficult trading conditions are, before pivoting to how well the company is doing itself.

The company's CanadaOne Auto business performed above expectations in the third quarter, Eagers said, while talking up the prospects of future expansion in North America.

Brokers have cheered the outlook, with Macquarie in a 5 November research note giving the company an outperform recommendation, and a $22.20 price target compared with $15.63 currently.

Personally I think Eagers' electric vehicle positioning is compelling, with the sector only likely to continue growing as high fuel prices persist.

REA Group released its quarterly result on 5 November, and while the headline figures were strong, there was an interesting detail which could be cause for concern.

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