Jefferies downgraded Autotrader Group Plc to a “hold” rating, citing uncertainty around the company’s planned April pricing event. The brokerage flagged potential dealer churn following backlash over its Deal Builder product, making it difficult to forecast outcomes.

CEO Nathan Coe confirmed dealer packages will rise by 5.5% from April 1, a smaller increase than last year’s 8% hike. Jefferies noted that while the increase aligns with prior guidance, dealer reaction remains a critical unknown, leaving consensus revenue forecasts for FY27 looking fragile.

The £165 price increase accounts for most of the average revenue growth expected by analysts, leaving over £50 to be generated from stock volumes and add-ons. Jefferies set a 650.00p price target, implying 14% upside from the current 568.40p share price.