Anthony Porto provides an update on Carsales post the FY21 result with a strong share price run since upgrading the name in May seeing CAR back on a Hold rating. Despite this, the growth outlook for CAR looks promising with the launch of the domestic transactional offering ‘Carsales Select’ and increased proportion of earnings derived from International operations setting up a longer growth runway. Anthony remains positive on the stock and would see any weakness from here as a buying opportunity. In a similar vein, with REA down 10% since reporting based on near term lockdown impacts to the domestic residential market, this quality franchise is also beginning to screen attractively.

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