Needham analyst Chris Pierce has reiterated their bullish stance on CARG stock, giving a Buy rating yesterday.
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Chris Pierce has given his Buy rating due to a combination of factors that highlight CarGurus’ potential for sustained growth and profitability. The recent quarterly earnings report and management commentary have reinforced confidence in the company’s ability to monetize its marketplace effectively. This is supported by a growing number of dealers, increased adoption of premium service tiers, and promising initial results in generating leads for new vehicles.
Despite the competitive threat posed by major players like Amazon, Pierce believes that CarGurus’ core platform remains robust. The company benefits from high-margin recurring revenue and has clear avenues for growth, making it an attractive investment. The price target of $44 is based on a valuation that considers CarGurus’ projected growth and profitability, offering a compelling risk/reward balance for investors.