In a report released today, Chris Pierce from Needham reiterated a Buy rating on CarGurus, with a price target of $44.00.
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Chris Pierce has given his Buy rating due to a combination of factors that were reinforced during his recent discussion with CarGurus’ CEO at the Needham Growth Conference. He highlights that CarGurus is effectively exploiting its extensive consumer data and its strong position as a leading automotive marketplace to broaden its addressable market, particularly through expansion into dealer-focused software and data solutions. Management’s guidance for sustained low- to mid-teens revenue growth for a second year in a row, alongside stable pricing dynamics at the market level, supports the view of a durable growth profile.
Although near-term investments are expected to weigh modestly on margins, Pierce views this as consistent with prior expectations and supportive of longer-term value creation. His $44 price target, which implies roughly a 12.5x multiple on projected 2026 adjusted EBITDA, reflects confidence in CarGurus’ operational execution, its recurring subscription-driven revenue base, and its entrenched leadership in the used-car marketplace. Collectively, these elements underpin his reaffirmed Buy recommendation on the stock.
In another report released on December 30, BTIG also maintained a Buy rating on the stock with a $44.00 price target.
Based on the recent corporate insider activity of 125 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of CARG in relation to earlier this year.