CarGurus price target lowered to $38 from $40 at Oppenheimer

Oppenheimer lowered the firm’s price target on CarGurus (CARG) to $38 from $40 and keeps an Outperform rating on the shares. The firm notes the company issued initial 2026 revenue guidance of up 10%-13% year-over-year, implying that subscription upgrades and higher new product attach rates will deliver durable U.S. QARSD pricing. Oppenheimer sees upside potential as new products benefit from CARG’s dealer/product scale to generate high incremental margins. CarGurus’ shares are down on the AI disruption narrative even though the company owns the top used car proprietary valuation data while its dealer relationships appear difficult for LLMs to disrupt, the firm adds.