Perception can be powerful, particularly when it comes to stock valuation.
Despite no change to its earnings, Carsales (ASX:CAR) stock has risen 25% over recent months. While its full-year result announced in August was largely positive, Senior Analyst Gaston Amoros says the key driver (pun intended) behind this rise has been a change in how investors perceive the business.
He joins Senior Analyst Alex Shevelev to discuss the current view on how Carsales plans to capture more of the value involved in selling vehicles and take some of the pain out of the time-consuming process of buying a car.
Could this development be at odds with Carsales’ current client base? While in its early stages, Gaston explains it could be a big opportunity and a win-win for all parties in future.