Analyst Chris Pierce from Needham reiterated a Buy rating on CarGurus (CARG – Research Report) and keeping the price target at $45.00.
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Chris Pierce has given his Buy rating due to a combination of factors, including CarGurus’ strong positioning in the used auto lead generation market. The company has successfully leveraged consumer insights from its highly trafficked shopping platform, alongside wholesale and retail pricing data, to enhance dealer engagement and transition towards a more consultative business model.
Despite a recent quarterly revenue miss in the U.S., Pierce expects that consensus estimates will align more closely with his conservative outlook, setting the stage for potential upside in the coming fiscal year. Additionally, his price target reflects a premium based on CarGurus’ momentum, industry-leading return on investment, and the anticipated relaunch of its wholesale business.