Carsales.com Ltd
Thesis
Carsales.com Ltd is positioned to benefit from its dominant online platform in the Australian auto market, which has strong network effects and high EBITDA margins. Despite recent economic challenges, the company's core segments are performing well, and its international marketplaces are growing rapidly. The stock is currently undervalued, with a target price of AUD $22.62 per share, representing a 75% total return opportunity.
Did it work?
The stock has significantly outperformed the target price, achieving a return of +927.2%, which far exceeds the projected 75% total return. The thesis regarding Carsales.com Ltd's strong market position and growth in international marketplaces has clearly played out, validating the long position taken in the pitch.
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