Analyst Etienne Ricard of BMO Capital maintained a Buy rating on AutoCanada, retaining the price target of C$24.00.
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Etienne Ricard has given his Buy rating due to a combination of factors tied to improving fundamentals and earnings momentum. He highlights that AutoCanada’s latest quarterly results exceeded expectations, with stronger-than-anticipated profitability from new vehicle sales and clear internal actions underway to restore used vehicle margins and stabilize volumes through better pricing discipline and inventory control.
Ricard also points to the company’s valuation and strategic positioning as supporting the Buy rating, noting that the shares trade around their mid-cycle earnings multiple while the business appears to be near a trough in both earnings and market sentiment. With a focus on boosting dealership productivity, leveraging data analytics, and normalizing used vehicle gross profit per unit through 2026, he believes the risk/reward is attractive and therefore keeps his $24 price target unchanged.
Based on the recent corporate insider activity of 25 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of ACQ in relation to earlier this year.