Added to YB: 2024-04-12
Pitch date: 2024-04-11
ACQ.TO [bullish]
AutoCanada Inc.
-9.81%
current return
Author Info
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Company Info
AutoCanada Inc., through its subsidiaries, operates franchised automobile dealerships and related business.
Market Cap
CAD 426.3M
Pitch Price
CAD 23.75
Price Target
60.00 (+180%)
Dividend
N/A
EV/EBITDA
13.27
P/E
-8.54
EV/Sales
0.42
Sector
Specialty Retail
Category
growth
AutoCanada Revisited - $ACQ.TO
ACQ.TO: Project Elevate aims to boost gross margins (potentially to 19%) via parts/service, F&I, and used cars (Canadian margins to 6%, US to 4.7%+) and cut SG&A to 65-70% of gross profit by 2025 (vs 77% now). Success could drive EPS to $6+ by 2026 (from $2-$3 today). 7-10x P/E = $42-$60 PT for 2026-27. Digital Used partnership with Kijiji valued at $250M+ (40% of market cap). Risks: Canadian recession, consumer weakness. Upside: Capital allocation, margin expansion, growth.
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