10:10 AM EST, 03/08/2024 (MT Newswires) -- National Bank said Thursday that AutoCanada Inc. ( AOCIF ) missed estimates on EBITDA and EPS in the fourth quarter, driven by higher percentage of operating expenses.

The company reported Q4 revenue of $1.48 billion, as compared with consensus estimate of $1.41 billion and the NBF estimate of $1.45 billion.

Among the highlights from the conference call, National Bank noted that the company reported a lack of product at the sub-$30,000 level. Also, the management believes that the US segment is a necessary part of the platform; and Project Elevate

upside is expected to be felt in 2025E.

"We maintain our "consumer under pressure" view, making a positive investment thesis more challenging at the moment, even at what we deem as a reasonable valuation for ACQ shares," the analysts said.

National Bank reiterated the sector perform rating and lowered the target price to C$22 from C$24.50.

The company's shares were up 3.4% on last look on Friday.

Price: 21.38, Change: +0.46, Percent Change: +2.20