Eagers Automotive, REA Group, National Australia Bank: Buy, sell, or hold?

It's a trying time in the Australian economy, which will impact all three of the companies I'm looking at today.

One is expected to weather that storm better than the other two, and is racking up some record numbers, and with that, some ticks from the analysts.

Let's see who they like, and who they think will struggle.

Eagers Automotive Ltd (ASX: APE)

You would think a vehicle retailer would be doing it tough at the moment, what with the price of petrol shooting higher as a result of the conflict in the Middle East, but Eagers is defying that thesis.

One reason is that the company has cornered a 31% share of the market in plug-in electric vehicles, according to the company's trading update on 5 November, with a dominant position in BYD sales.

It also has a strong position in the other market leader, Toyota.

The Eagers trading update starts by emphasising how difficult trading conditions are, before pivoting to how well the company is doing itself.

The company's CanadaOne Auto business performed above expectations in the third quarter, Eagers said, while talking up the prospects of future expansion in North America.

Regarding Australia Eagers said:

Notwithstanding the market conditions in Australia, Eagers Automotive expects to deliver record revenue in 2026. Assuming third quarter market conditions continue through to year end, the Company expects to achieve full year reported revenue from continuing operations in the range of $17.3 billion to $17.5 billion, up at least 30% on the prior financial year. Full year revenue and Underlying Profit Before Tax are both expected to be records for Eagers Automotive in 2026.

Brokers have cheered the outlook, with Macquarie in a 5 November research note giving the company an outperform recommendation, and a $22.20 price target compared with $15.63 currently.

Morgan Stanley is even more bullish, with a $26 price target.

Personally I think Eagers' electric vehicle positioning is compelling, with the sector only likely to continue growing as high fuel prices persist.

REA Group Ltd (ASX: REA)

REA Group released its quarterly result on 5 November, and while the headline figures were strong, there was an interesting detail which could be cause for concern.

The company's quarterly revenue was up 11% to $450 million and EBITDA was up 12% to $294 million.

Reading into the results more closely though, and it's revealed that real estate listings actually fell 2%.

Chief Executive Officer Cameron McIntyre said the Federal Government's tax changes and higher interest rates would, "continue to weigh on buyer demand but homeowner equity buffers, limited forced selling and low unemployment will support the market''.

Broker UBS said in a research note published on 5 November that the outlook for REA was uncertain.

UBS has a neutral rating on REA shares and a price target of $184 compared with $172.70 currently.

My take is that real estate will remain challenging potentially for another year or so, with interest rates tipped to stay high until late 2027, and tax changes continuing to keep investors on the sidelines.

National Australia Bank Ltd (ASX: NAB)

Brokers are divided on NAB, with UBS having a buy recommendation on the bank with a price target of $45 compared with $39.26 currently.

UBS, in its 6 November research note issued after NAB's full year results were released the previous day, said the bank's underlying business seemed stable, and it would benefit from restructuring efforts as time went on.

Morgans on the other hand has a price target of just $34.19 on NAB, and said the bank's growth outlook just doesn't justify the current share price.

Morgans has a trim recommendation on NAB shares, although the broker does agree with UBS that NAB leads the market in business banking.

For my part, NAB's large increase in credit impairment charges released along with the full year results was worrying. I'd approach with caution.

The post Eagers Automotive, REA Group, National Australia Bank: Buy, sell, or hold? appeared first on The Motley Fool Australia.

Motley Fool contributor Cameron England has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Eagers Automotive Ltd and Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2026