Question: Am thinking of adding carsales.com (CRZ) to my super portfolio at $10.50. What do you think of the stock and that price? Am also thinking of adding to my Bendigo and Adelaide Bank (BEN) holding but am concerned that the price is too high at the moment. Should I be waiting for a drop in market?
Answer (By Paul Rickard): I think carsales.com looks ok value around $10.50. There is a little bit of concern at the moment that industry sales are down – and this may impact carsales.com’s revenue.
The brokers still seem to like it. According to FN Arena, the current consensus price target is $11.41 and the sentiment rating is +0.6 (scale -1.0 most negative, +1.0 most positive).