The team at Macquarie just released its latest High Frequency Consumer Data report and consumer stock picks. 

This included stock picks from both consumer discretionary and staples sectors. 

Its High Frequency Consumer Data series provides a sample of consumer spending habits on a weekly basis. The sample is weighted towards Sydney and Melbourne and may not be representative of overall spending in Australia. 

Black Friday data 

The most recent report released on Monday, included data from the black fortnight period. 

Macquarie said the Black Friday promotional period has driven year-over-year sales growth across key retail categories of Online (+18%) and Pharmacy (+13%) and Furniture (+8%) categories, with promo activity driving spend. However, Electronics (-1%) sales declined.

The report said recent commentary from the media and industry participants suggest trading has been strong in the household goods category. However, feedback TV sales have been flagged as softer.

The good, the bad and the ugly 

Macquarie noted that pharmacy retailing has continued its strong momentum into October and November 2025, growing at low-double-digit rates and remaining consistent with recent trends, which is supportive for Sigma Healthcare (ASX: SIG). 

Furniture retailers such as Harvey Norman Holdings Ltd (ASX: HVN) and Nick Scali Ltd (ASX: NCK) are also seeing mid-single-digit growth. This is a positive outcome given the softer outlook for RBA policy and the resulting drag on new housing creation. 

On-premise alcohol sales have strengthened as well,rising about 3% year-on-year. This was potentially helped by the first Ashes test in late November.

Macquarie said this is a small positive for Endeavour Group Ltd (ASX: EDV)

On the less favourable side, off-premise alcohol sales are still soft compared with last year, though the rate of decline has eased somewhat, which remains an important factor for Endeavour Group. 

There are also signs of weaker consumer spending on electronics, although Macquarie is waiting for more detailed data before turning more cautious. 

Meanwhile, online retail growth has accelerated, but this expansion is dilutive to the domestic retail system and adds pressure to traditional store-based retailers.

Stock picks 

Overall, Macquarie remains positive on Coles Group Ltd (ASX: COL). It said it expects continued market-share gains and benefits from supply-chain investments to drive earnings.

We remain positive on COL driven by market share gains and scaling supply chain investments driving earnings growth (MRE EBIT +14% y-y in FY26E).

In the discretionary sector, JB Hi-Fi Ltd (ASX: JBH) is Macquarie’s key pick. This is after its recent share price pull-back.

Among small and mid-caps, Nick Scali Ltd (ASX: NCK) is highlighted as the top household-retail pick. Ultimately, this is thanks to market-share growth in a gradually improving furniture category. 

Finally, in apparel, Universal Store Holdings Ltd (ASX: UNI) is favoured, supported by strong sales in Universal Store/Perfect Stranger and rising private-label penetration, which is helping lift gross margins.

The post Macquarie names its top ASX consumer staples and consumer discretionary stock picks appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended Nick Scali and Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Building generational wealth takes more than luck; it requires ownership of assets that grow over time.

For most investors, exchange-traded funds (ETFs) are one of the simplest ways to achieve that.

They provide broad diversification, exposure to world-class companies, and the ability to let long-term compounding do the heavy lifting.

If the goal is to build wealth that could one day benefit children or grandchildren, you want ETFs backed by sustainable business models, strong global tailwinds, and decades-long growth runways.

Three ASX ETFs that stand out as exceptional long-term building blocks for anyone thinking beyond their own lifetime are named below:

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

If you want to build wealth that lasts, investing in companies with strong, predictable cash flows is a good place to start. The Betashares Global Cash Flow Kings ETF targets exactly that.

Rather than focusing on hype or short-term market momentum, this fund leans into profitability, operational discipline, and financial resilience. It includes stocks like Palantir (NASDAQ: PLTR), Visa (NYSE: V), and Alphabet (NASDAQ: GOOGL).

Cash flow is the engine of compounding. Companies that consistently generate it can reinvest in growth, buy back shares, acquire competitors, or raise dividends. Over decades, that creates an enormous wealth-building effect, making this fund a potentially powerful foundation for generational portfolios. It was recently recommended by analysts at Betashares.

iShares S&P 500 ETF (ASX: IVV)

If you could only choose one ETF to pass down to the next generation, the iShares S&P 500 ETF would be hard to beat. It tracks the S&P 500 index, giving investors exposure to 500 of America’s largest and most influential companies.

This includes household names like Microsoft (NASDAQ: MSFT), Nvidia (NASDAQ: NVDA), Amazon (NASDAQ: AMZN), McDonald’s (NYSE: MCD), and Walmart (NYSE: WMT).

The US economy has been a compounding machine for more than a century, driven by innovation, entrepreneurship, and technological leadership. This ASX ETF captures that long-term engine without requiring investors to pick winners or time markets.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The VanEck Morningstar Wide Moat ETF provides investors with access to stocks with fair valuations and lasting competitive advantages that protect their profits from rivals. These moats might include strong brands, high switching costs, patents, dominant market share, or cost advantages.

Its portfolio currently holds world class businesses such as Nike (NYSE: NKE), Adobe (NASDAQ: ADBE), and Walt Disney (NYSE: DIS).

Because wide-moat businesses tend to generate above-average returns on capital, they often compound value at a faster rate over long periods. For investors thinking in decades rather than years, the VanEck Morningstar Wide Moat ETF could be a great pick.

The post 3 ASX ETFs perfect for building generational wealth appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Nike, VanEck Morningstar Wide Moat ETF, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe, Alphabet, Amazon, Microsoft, Nike, Nvidia, Palantir Technologies, Visa, Walmart, Walt Disney, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft, long January 2028 $330 calls on Adobe, short January 2026 $405 calls on Microsoft, and short January 2028 $340 calls on Adobe. The Motley Fool Australia has recommended Adobe, Alphabet, Amazon, Microsoft, Nike, Nvidia, VanEck Morningstar Wide Moat ETF, Visa, Walt Disney, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ASX stocks are one of the best ways to grow wealth significantly over the long-term. They’re simple to own and can be big beneficiaries from the financial power of compounding.

I’d advocate for almost every Australian who can manage it to regularly invest in the (ASX) stock market because of how much that can make a difference after 20, 30 or 40 years.

Someone who is in their 30s may be approaching the best earnings phase of their life, so it’s a good time to think about putting some money towards investing to help grow wealth faster.

If someone can regularly invest more money into their portfolio, they could reach $1 million or even more in the coming decades. Let’s have a look at how much it could grow.

Wealth potential of investing $1,500 monthly into ASX stocks

While investing $1,500 per month may be a stretch for some households, it may be achievable for others. Savings are built by spending less than we earn. So, creating savings comes down to spending less, earning more or a combination of both.

If a 30 year old wanted to start investing $1,500 per month, they may have 35 years or so before reaching retirement age. That’s a long time for compounding to help growth.

Over the long-term, the (ASX) stock market has returned an average of 10% per year, so that’s the rate of return I’ll use for my calculations. Returns could be stronger or weaker than that over the long-term.

If someone invested $1,500 per month for 30 years and it returned an average of 10% per year, then that could turn into $2.96 million after three decades. That’d be an amazing result, in my opinion.

The 30-year-old may decide to continue investing until they’re 70, giving an extra five years of compounding, which could make a big difference to the final result. Continuing to invest $1,500 per month and compounding at 10% per year could enable the nest egg to grow into $4.88 million.

But, someone else may decide they want to retire earlier than 65. Investing $1,500 per month and compounding for 25 years at 10% per year could become $1.77 million, which is still an excellent portfolio value.

What to invest in?

There are a number of compelling exchange-traded funds (ETFs) – some of which do invest in ASX stocks- that can provide investors with pleasing diversification and good returns.

Investors can invest in some of the best global businesses with certain ASX-listed ETFs such as Vanguard MSCI Index International Shares ETF (ASX: VGS), VanEck MSCI International Quality ETF (ASX: QUAL), Betashares Global Quality Leaders ETF (ASX: QLTY) and VanEck Morningstar Wide Moat ETF (ASX: MOAT).

I don’t know what the future returns of the above ETFs will be, but I’m optimistic they will be positive for wealth-building over the long-term. I’d also happily add strong ASX growth shares to my portfolio to help boost overall returns alongside the ETFs.

The post If a 30-year-old invests $1,500 a month in ASX stocks, here’s what they could have by retirement appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in VanEck Morningstar Wide Moat ETF and VanEck Msci International Quality ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Mesoblast Ltd (ASX: MSB) shares have been volatile over the last year. 

The ASX 200 healthcare stock has fluctuated between lows of $1.52 per share and highs of $3.35. 

In the last month, it is up 23%. 

These massive swings can make it difficult for investors to pinpoint fair value. 

The company works in clinical-stage biotechnology. It develops and commercialises allogeneic cellular medicines to treat complex diseases resistant to conventional standards of care.

This includes recently FDA approved product RYONCIL. It is the first FDA-approved donor-derived cell therapy that doctors can use immediately to treat children and teens who develop a severe, steroid-resistant complication after a transplant.

Yesterday, The Motley Fool’s Marc Van Dinther covered the company may be close to more regulatory breakthroughs in the US. 

Broker Bell Potter has also weighed in with updated guidance on Mesoblast shares, saying this progress towards commercial launch and monetisation is a key value driver.

Here’s what the broker had to say. 

2025 a banner year 

The broker said 2025 has already been a banner year for Mesoblast. This began with the late December 2024 FDA approval for Ryoncil, quickly followed by a highly successful commercial launch.

This was facilitated by universal medicare coverage from 1 July 2025 and capped off by a product specific J code from 1 October – practically guaranteeing reimbursement for any hospital seeking reimbursement for on label use. 

Not surprisingly this virtual guarantee on reimbursement has driven exponential growth in December quarter sales.

Mesoblast is guiding to gross revenues of at least US$30m (vs $21.9m for 1Q FY26), a near 50% increase.

Long term outlook from Bell Potter

Bell Potter also highlighted the long term exclusivity that Mesoblast has. 

Ryoncil has 7 years exclusivity from launch in paediatric GvHD and 12 years before any biosimilar (using an MSC) may emerge. The exclusivity period should extend beyond 2037 based on the remaining life of composition of matter and method of use patents.

The broker said based on the growth evident at this point, the market is witness to the birth of the new standard of care for the treatment of inflammation and cytokine release syndrome associated with the graft vs host disease.

Speculative buy for Mesoblast shares

The team at Bell Potter has reiterated its speculative buy recommendation on Mesoblast shares. 

It also has a $4.00 price target on the healthcare stock. 

This indicates an upside of almost 42% from yesterday’s closing price of $2.82. 

Elsewhere, TradingView has a 12 month target price of $4.25 (more than 50% upside). 

Online brokerage platform Selfwealth lists Mesoblast shares as undervalued by 26%. 

The post How much further upside is there for Mesoblast shares after soaring 23% in a month? appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

One of the hardest hit S&P/ASX 200 Index (ASX: XJO) shares over the past year has been James Hardie Industries plc (ASX: JHX) After such a heavy fall, it’s definitely worth looking into whether the James Hardie share price should be viewed as an opportunity.

One of the fund managers that is invested in the construction materials business is L1.

L1 noted that while the James Hardie share price declined by 6% in November 2025, the business did see a rally of around 20% from the lows in early November, as shown in the chart below.

The decline of the James Hardie share price occurred following the announcement of an unexpected deletion, as the business saw its CDIs being deleted from the MSCI Australia Indices.

The surprise removal led to more than 10% of its shares on issue needing to be sold by passive share investors.

L1 decided to take advantage of that sell-off in early November to increase its shareholding near the lows of around $26 per share. The fund manager attributed that recovery during the month to an update in its full-year earnings guidance with its second-quarter earnings update. L1 also said the James Hardie share price recovered following the completion of the index transition in late November, ending the month at a value of around $30 per share.

In that quarterly update, James Hardie revealed that net sales rose by 34% to $1.29 billion, adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) increased 25% to $329.5 million, operating net profit sank 84% to $24 million and statutory net profit declined 167% to a loss of $55.8 million.

The net sales growth was primarily due to the US acquisition called AZEK. Organic net sales declined by 1%.

Is the current James Hardie share price a buy right now?

The fund manager noted that the outlook in the US remains uncertain, with consumers exercising caution and ‘housing starts’ remaining subdued.

The fund manager believes that the impacts are “transitory” and should improve over the next 12 to 18 months, with interest rates expected to decline. Consumer confidence is also projected to improve from here.

L1 believes that James Hardie, together with the recently acquired US business Azek, remains a “secular market share gainer in attractive industry verticals within the building products industry.”

The fund manager suggests that it continues to see further upside from the current James Hardie share price.

The post After falling 47% in a year, is the James Hardie share price a buy? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are wanting exposure to the artificial intelligence (AI) boom, then there is a new option on the ASX that you may want to get better acquainted with.

That ASX AI stock is Black Pearl Group Ltd (ASX: BPG).

This recently listed data technology platform company provides AI driven sales and marketing solutions to small-medium sized businesses in the North American market.

The company’s solutions are powered by its private data platform, Pearl Engine, and proprietary large language model (LLM).

Bullish broker

The team at Bell Potter has been running the rule over the ASX AI stock and likes what it sees. It said:

Blackpearl Group is a data technology platform that develops and operates a lead prospecting and marketing product suite via its proprietary Pearl Engine platform and augmented large language model developed by BPG in 2022. BPG transforms anonymous, unstructured web visits and data layers into identifiable prospects to significantly increase efficacy for SME ad/marketing spend by targeting prospects with a high intent to buy. BPG’s evolution from legacy email branding/engagement tracking has grown ARR from $4.6m in 2Q24 to $19.5m as at 2Q26 at a CAGR of 106%.

The broker believes that Black Pearl Group is well-positioned for growth in the coming years and expects it to achieve its medium term annualised recurring revenue (ARR) target. It adds:

We forecast BPG to hit $50m ARR by 3Q31, consistent with BPG’s 3-5 year targeted horizon (BPe: 4.7years), from: (1) Evolution of Pearl Diver/Engine into wholesale, Data-as-a-Service, and Platform-as-a-Service solutions capable of penetrating the advertising agency market; (2) Acquisition of Nth. Am. agentic AI platform, B2BRocket, which is expected to grow to $10m ARR by mid-2Q27 (2Q26: ~$4.7m); (3) Driving adspend efficiencies in budget-constrained segments by eliminating non-human (i.e. bot) traffic; (4) A large addressable market consisting of 32m SME’s in North America, who are increasingly interested in deploying AI-based solutions; and (5) Strong management of CAC payback (4.6mths) and churn (<5%) via customer qualification and onboarding/revenue-ramping strategies.

Should you buy this ASX AI stock?

Bell Potter thinks that Black Pearl Group could be a good pick for investors with a high tolerance for risk.

According to the note, the broker initiated coverage on the stock with a speculative buy rating and $1.45 price target. Based on its current share price of 84.5 cents, this implies potential upside of 72% for investors over the next 12 months.

Commenting on its buy recommendation, Bell Potter said:

We initiate on BPG with a Speculative Buy recommendation and a valuation of A$1.45/sh. We use a blended 50/50 DCF (WACC: 12.3%) and EV/ARR (weighted multiple relative to $50m ARR forecast horizon), which reflects near-term value attributed to ARR growth balanced by value captured in longer-term potential cashflow generation.

The post Bell Potter says this new ASX AI stock could rise 70% appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Westpac Banking Corp (ASX: WBC) shares closed 0.55% lower on Tuesday afternoon at $38.03 a piece. Over the past month the shares have tumbled 3.77%, but they’re still 15.7% higher than this time last year.

So if I bought $5,000 of Westpac shares in January, what would it be worth now?

Westpac was the second-highest performing big 4 bank this year, behind Commonwealth Bank of Australia (ASX: CBA). Westpac shares are currently trading 17.34% higher than the 2nd of January 2025. This means that $5,000 invested on the first day the ASX opened in January this year would now be worth a total of $5,867.

What happened to Westpac shares this year?

Westpac shares jumped 15% after it released a positive third quarter update in mid-August, and the share price remained relatively stable until it posted an unexciting full year FY25 result in early November.

The latest full-year update, where the bank reported a 1% decline in its net profit after tax, and after excluding notable items, net profit reduced by 2% year-over-year, caused a 5% share price slump.

It wasn’t all bad though. The banking giant was able to hike its full-year dividend to $1.53 per share, representing an increase of 2 cents per share.

What’s ahead for the banking giant in 2026?

Unfortunately, analysts consensus is that the buying opportunity for Westpac shares has now passed, with a decent downside tipped for the big 4 major over the next 12 months.

According to TradingView data, out of 16 analysts, 9 have a sell or strong sell rating on Westpac shares. The remaining 7 have a hold rating on the stock.

The average target for the share price over the next 12 months is $33.34, but some analysts expect this could drop as low as $23.03 by this time next year. That implies a potential downside as big as 39.44% for investors in 2026, at the time of writing. 

The team at Macquarie think the ASX bank stock will slump further next year. The broker has an underperform rating on the stock and a target price of $31. This implies a potential 18.5% downside at the time of writing. The bank is expected to have limited growth over the coming years.

Morgans analysts are also bearish on Westpac shares. The broker has advised investors who are overweight on the bank stock to sell up following the ASX 200 bank share’s strong gains this year.

The post $5,000 invested in Westpac shares at the start of 2025 is now worth…. appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I believe the buying and holding high-quality ASX stocks is one of the best ways to build significant wealth.

But which stocks could be destined for big things over the next decade?

Let’s take a look at three that appear well-placed to beat the market between now and 2035 and are being recommended as buys by analysts. They are as follows:

NextDC Ltd (ASX: NXT)

Artificial intelligence, streaming, cloud software, and digital commerce all rely on one physical ingredient: data centres.

NextDC has been building Australia’s most advanced network of hyperscale and enterprise-grade data centres for more than a decade, and demand is only accelerating.

Artificial intelligence workloads, cloud migration, and rapid corporate digitisation are driving a structural need for more compute power. And once a customer moves into a data centre, switching is costly and disruptive, which gives NextDC unusually strong pricing power and long-term revenue visibility.

With new facilities rolling out and utilisation levels climbing each year, NextDC could be one of the ASX’s most dependable compounders well into the next decade.

This week, in response to its agreement with ChatGPT owner OpenAI, Morgan Stanley put an overweight rating and $21.00 price target on its shares.

Life360 Inc (ASX: 360)

Life360 has quietly become one of the most successful tech stories on the ASX over the past few years.

The family location app provider is now evolving into a broader safety platform with layers of subscription revenue, new product features, and global reach.

Recent updates revealed very strong operational momentum, including accelerating subscriber growth, record paying circle additions, rising ARPU, and strong cash generation. With around 90 million monthly active users, Life360 has a significant user base to monetise through its advertising business, cross-sells, and premium offering.

Over the next decade, its opportunities extend far beyond tracking. There are potential opportunities in home security integrations, automotive partnerships, AI-driven safety tools, and new international markets.

It is no wonder then that Morgan Stanley recently put an overweight rating and $58.50 price target on its shares.

Pro Medicus Ltd (ASX: PME)

Few ASX companies enjoy the kind of competitive advantage Pro Medicus has built. Its Visage imaging platform has become the gold standard for radiologists, offering faster rendering speeds, greater efficiency, and cloud-based workflows that competitors struggle to match.

And with radiologists in short supply, anything that improves the performance of these departments is in high demand. As a result, it is no surprise that major US health networks have been signing multi-year, multi-million-dollar contracts with Pro Medicus in recent years.

Analysts at Citi are bullish on Pro Medicus. They have a buy rating and $350.00 price target on its shares.

The post The ASX stocks I think could define the next decade of growth appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of Motley Fool Money. Motley Fool contributor James Mickleboro has positions in Life360, Nextdc, and Pro Medicus. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Life360. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

CAR Group Ltd (ASX: CAR) is an ASX 200 company that has seen its share price stumble in recent months. 

It has fallen more than 20% since August, and could now be a quality buy-low candidate. 

It is the company behind popular online marketplace carsales.com.au. 

After launching in Australia, the company has diversified its exposure away from an Australian auto-classifieds platform to servicing non-auto verticals across geographies.

It now operates digital marketplace businesses in South Korea (Encar), the United States (Trader Interactive) and Chile (chileautos).

The team at Bell Potter released a new report on the ASX 200 stock yesterday. 

It reiterated its buy recommendation and has a positive view on the company including a price target indicating more than 30% upside. 

Here’s what the broker had to say. 

Open roads ahead for Car Group

The broker is optimistic on the company’s ability to generate cash flow thanks to its global network of platforms. 

We recently initiated on the company with a positive view based partly on a platform enhancement roadmap designed to drive value from its market-leading networks.

Bell Potter highlighted several growth initiatives for CAR, including:

• Expanding consumer-to-consumer (C2C) payments in Australia, which will bring more transactions onto its platform.
• Introducing a pay-per-lead model in North America’s marine segment, aiming to capture additional market share.
• Pursuing geographic expansion and improved lead-nurturing capabilities in Latin America.
• Enhancing CAR’s dealer CRM systems to help dealers more effectively buy, manage and sell vehicle inventory.

Additionally, Bell Potter believes the company’s dealer subscription revenue model can help insulate against volume/price fluctuations of product listings.

Discounted valuation compared to peers

Yesterday’s report also noted that the current share price is compelling value. 

It said Car Group continues to screen favourably on a risk-adjusted return basis when considering the stability of earnings growth against comparable ASX-listed classifieds platforms REA Group (ASX: REA) and SEEK Limited (ASX: SEK).

Based on this guidance, the broker has a buy recommendation on this ASX 200 company. 

It also has a price target of $42.20. 

This indicates an upside of 30.32% from yesterday’s closing price of $32.38. 

CAR’s current share price reflects a 12mth fwd P/E of ~28x, a two-year low; we feel this misses the underlying investment case for CAR heading into a period from 1H27 onwards from margin headwinds rolling off into an accelerating adj. EPS growth profile.

The post Broker tips 30% upside for this ASX 200 stock appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended CAR Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.