CarGurus, the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Marvin Fong from BTIG maintained a Buy rating on the stock and has a $39.00 price target.
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Marvin Fong has given his Buy rating due to a combination of factors that highlight CarGurus’ strong performance and growth potential. The company has delivered robust EBITDA alongside better-than-expected marketplace revenue, with guidance indicating a promising increase in both revenue and margins. This consistent growth, even in a challenging market environment, underscores the effectiveness of CarGurus’ business model and its ability to introduce new growth drivers.
International expansion has been a significant contributor, with impressive revenue growth and dealer count increases. Additionally, CarGurus’ innovative product releases, such as PriceVantage and CG Discovery, have enhanced dealer engagement and improved conversion rates. These developments, coupled with a solid track record of meeting financial targets, suggest a resilient and valuable business model, justifying the Buy rating.
In another report released today, Needham also reiterated a Buy rating on the stock with a $44.00 price target.