Eagers Automotive Ltd's stock plummeted 5.18% during intraday trading on Thursday, as investors reacted to renewed concerns about vehicle supply constraints affecting the car dealer's operations.

According to market analysis, while Eagers Automotive's recent trading update showed positive trends in new orders, the return of vehicle-supply constraints has taken the gloss off these results. The supply crunch reportedly involves Toyota vehicles and cars that don't run on traditional motor fuels, including electric vehicles and other clean-energy cars that Australian motorists are buying at an accelerated pace as fuel prices surge.

Financial firm Jefferies noted that despite Eagers speaking positively about a second-half supply recovery, they've taken a cautious approach by cutting their fiscal year 2026 pretax profit forecast by 3%. The firm maintains a buy rating on the stock with a price target of A$30.50 per share, but the near-term supply challenges appear to be weighing on investor sentiment.