CarTrade shares crash 19% on JM Financial's 'Sell' rating
CarTrade Tech, a big name in online car sales, saw its stock tumble nearly 19% on Wednesday, September 10, 2024.
The drop came right after JM Financial downgraded the company from "Hold" to "Sell" and slashed its target price, saying CarTrade's current valuation is just too high—especially with all the buzz around GST cuts and OLX's recovery.
Stock did bounce back a bit by midday
JM Financial pointed out that CarTrade is valued at about 43 times its projected earnings for FY27—way above what they think is fair.
They're also worried about CarTrade relying heavily on B2B clients and how new AI tools could shake up traffic for platforms like this.
After the steep fall, the stock did bounce back a bit by midday but was still down about 10%, showing investors are feeling pretty cautious about what comes next.