The Carsales.Com Ltd (ASX: CAR) share price may have finished the day 2% higher at $13.85 on Tuesday, but it could have further upside ahead of it if one leading broker is to be believed.
What happened?
According to a broker note out of Morgans, its analysts have retained their add rating and increased the price target on the car listings company's shares to $14.99.
This price target implies potential upside of over 8% for its shares over the next 12 months.
Morgans has done this following the company's decision to spend $244 million to acquire the remaining 51% stake of South Korea's Encar.com that it does not own.
The broker expects the acquisition to boost its underlying profit and earnings per share in FY 2018.
Morgans isn't the only broker that is bullish on Carsales. A note out of Ord Minnett reveals that its analysts have retained their buy rating and lifted their price target to $14.39.
