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’s rating is based on CarGurus’ strong performance and strategic positioning in the market. The company has demonstrated a clear advantage over its competitors in the lead generation space, while also making significant strides in expanding its reach into adjacent dealer software markets. This expansion is expected to enhance its pricing power, particularly with its Digital Deal product, which has shown higher close rates compared to traditional leads.
Despite competitive pressures from companies like Amazon, CarGurus’ strong industry positioning and return on investment profile provide a positive outlook. The company’s momentum and leadership in the market are reflected in the $44 price target, which is based on a valuation that considers the expected earnings growth through 2028. This target suggests confidence in CarGurus’ ability to maintain its leading position and capitalize on future opportunities.
Pierce covers the Consumer Cyclical sector, focusing on stocks such as CarGurus, ACV Auctions, and Rivian Automotive. According to TipRanks, Pierce has an average return of -3.9% and a 38.50% success rate on recommended stocks.