CarGurus, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Chris Pierce from Needham reiterated a Buy rating on the stock and has a $43.00 price target.
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Chris Pierce has given his Buy rating due to a combination of factors, including CARG’s strong competitive positioning and solid quarterly execution. The company is expanding faster than many rivals, adding more dealers and increasing revenue per dealer as it increasingly taps into its rich consumer data, which also underpins its opportunity to broaden its total addressable market.
Pierce also notes that concerns about higher spending did not materialize in the latest quarter, and guidance for the next period came in ahead of market expectations, easing profitability worries. He highlights that CARG is proactively developing AI and LLM-driven capabilities using its unique first-party shopping data, and he supports his positive view with a higher price target of $43, implying attractive upside based on a discounted EV/EBITDA multiple relative to its growth outlook.
According to TipRanks, Pierce is an analyst with an average return of -4.6% and a 41.42% success rate. Pierce covers the Consumer Cyclical sector, focusing on stocks such as Carvana Co, Sonic Automotive, and Aurora Innovation.