Carsales.Com Ltd
Carsales.com.au
|Having enforced transformation on the media sector by sucking dry its ‘rivers of gold’, online classified advertising sites are also changing, as display advertising takes over from the classified listings themselves as the main driver of growth. Certainly Merrill Lynch (ML) expects the 68 per cent of revenue that carsales.com.au currently gets from the classifieds to diminish, as the 3 per cent of total auto industry display ads it currently attracts inevitably grows. On 2010/11 revenue of $152m, ML’s target price is $5.30.
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