Eagers Automotive (ASX:APE) is expected to grow deliveries in the second half of fiscal 2026, supported by improved supply via its scaled partnership with Toyota following a constrained first half, according to a Wednesday note by Jefferies.

The company's trading update was "positive" about new order write, and turnover was up around 5% on the prior corresponding period, Jefferies said. Orders taken throughout this period exceeded deliveries by more than 29%, with supply restraints impacting and deferring delivery timing.

While Eagers was positive about a supply recovery in the second half, Jefferies opted for a cautious approach and cut fiscal 2026 profit before tax estimate by 3% to account for the reduced ability to convert new orders to deliveries/revenue.

The investment firm retained its buy rating and AU$30.50 price target for Eagers Automotive.

Eagers Automotive's shares tumbled 8% in recent Thursday trade.