Analysts at Barclays Capital have upgraded their investment rating on AutoTrader (LON:AUTO) and moved to an overweight position (from equal weight) ahead of the full year results announcement, due on 8 June.
The bank said: "There are risks in the outlook for used car pricing, but we do not expect wide forecourt closures. And even if that occurred, what matters most for AutoTrader are levels of used car stock. Here a decent outlook for used car transaction volumes should be a tailwind."
Price target increased to 470p per share (from 425p).
Meanwhile, Deutsche Bank maintained its hold rating and 435p target, which it said was on valuation grounds.
At 3:32pm: (LON:AUTO) Auto Trader Group Plc share price was +17.75p at 433.85p