- Oppenheimer analyst Jed Kelly reiterated an Outperform rating on the shares of CarGurus, Inc. (NASDAQ:CARG), raising the price target to $24 from $21.
- CarGurus recently reported its first quarter of FY23 results, where adjusted earnings of $0.260 beat estimates of $0.170. For 2Q, CarGurus expects revenues of $220 million to $240 million.
- The analyst notes that despite the challenging environment, CarGurus guided revenue flat sequentially, reflecting continued pricing wins with high-value dealers and CarOffer operational discipline.
- The analyst thinks the company’s operational initiatives are trending toward sustainable profitability with higher subscriptions.
- CarGurus is mainly set to grow because of its effective Renewal process that filters out lower-quality dealers, he adds.
- The analyst also applauds the company’s proprietary valuation technology, clean UX, and digital retail products to create sustainable traffic advantages and higher-intent shoppers.
- The analyst notes that these upbeat technologies will position the company as a leading marketing platform for U.S. car dealers.
- This apart, the company’s push into wholesaling should be transformational, creating a more transactional platform generating multiple expansions.
- Price Action: CARG shares are trading lower by 2.21% to $19.05 in the market session on Friday.
Archer-Daniels-Midland’s Financial Figures ‘Are Too High,’ Analyst Downgrades Stock
Archer-Daniels-Midland financial scrutiny as CFO placed on leave amid an investigation. Interim CFO appointed, FY23 outlook adjusted.
