Risks appear better understood and expectations for Auto Trader are more reasonable, Berenberg said on Friday as it upped the stock to 'hold' from 'sell' and lifted the price target to 365p from 350p.
Auto Trader pulled up to the City bumper with full year results as its efforts to control costs and develop new products allowed it to cope with a decline in new and used car deals.
Auto Trader Group more than tripled its dividend as revenue and earnings beat expectations for its full-year performance, with the new year forecast to see greater used car sales volumes and improving margins but a slowing in display advertising growth.
Auto Trader Group shares were a 'buy' for the Sunday Times' Inside the City column. Although to purchase the stock investors need to pay 30 times forecast earnings for the year to 31 March, the company dominates the market for used car sales, enabling it to make profit margins north of 60%. The new car market seems to have hit a major roadblock after years of cheap finance-fueled growth, with a decline in new sales predicted for 2017, which has put a dent in Auto Trader's valuation.
ITV: HSBC downgrades to Hold with a target price of 215p.
Rio Tinto: RBC upgrades to Top Pick with a target price of 4400p.
UBS initiated coverage of Auto Trader with a 'sell' rating and 375p price target.
Irish packaging group Smurfit Kappa, newly listed medical product company ConvaTec Group and online car retailer Auto Trader could make the leap into the FTSE 100 benchmark on Wednesday as part of the quarterly FTSE Russell index reshuffle.
The FTSE 250 was pretty much flat late into Thursday's session, with security software group Sohpos leading the way thanks to read-across from elsewhere
Morgan Stanley cut its forecasts and price share targets by varying degrees for internet players Rightmove, Auto Trader and Zoopla, but saw a higher price for Just Eat.
Online car sales firm Auto Trader Group motored to a £155m pre-tax profit in its first full year as a listed company, up from £10.9m last year.
The bid director deals of the day were undoubtedly the huge profits taken by Auto Trader's main executive management team a year after the company was spun out by the Guardian Media and Apax Partners.
Auto Trader's chief executive and finance director have together sold £32.3m worth of shares in the company.
London stocks were set for a firmer open on Wednesday as oil prices bounced back and investors awaited the release of the latest FOMC minutes.
Auto Trader Group: Goldman Sachs downgrades to neutral. Target price: 415.00p.
Like its larger benchmark counterpart, the FTSE 250 index pared early gains to finish Monday's session in negative territory.
A note on the media and internet sector from Morgan Stanley weighed on Pearson shares on Tuesday, as the educational publisher was downgraded among a largely positive stance on its peers.
UK equities registered slight gains as traders digested the policy announcement issued by the US Federal Reserve overnight and despite the renewed tensions evident in Greek funding markets.
Auto Trader Group, the UK car classified company on Thursday priced 590m shares at 235p/share in its initial public offering in the London market.
The Footsie began the morning higher as traders digested a surprisingly dovish set of macroeconomic projections from the US Federal Reserve overnight which set off sharp moves in all asset classes.