CarGurus price target lowered to $37 from $44 at Needham

Needham lowered the firm’s price target on CarGurus (CARG) to $37 from $44 and keeps a Buy rating on the shares. After attending the National Automobile Dealers Association’s conference, the analyst contends that the disintermediation risk impacting CarGurus sentiment at this time is overblown, with dealers being counseled to take a conservative approach to AI adoption and to focus their early efforts on local brand marketing and customer engagement tools vs leveraging AI to drive increased sales given typical consumer car shopping behavior, the analyst tells investors in a research note.