CarGurus price target lowered to $40 from $42 at Oppenheimer

Oppenheimer lowered the firm’s price target on CarGurus (CARG) to $40 from $42 and keeps an Outperform rating on the shares. The firm highlights increasing CarGurus’s 2026 EBITDA 4% on accelerating marketplace revenue from strong U.S. dealer net adds and durable U.S. QARSD pricing, and sunsetting CarOffer on market volatility and Digital Deal’s ability to generate similar conversion at higher incremental margins. The CarOffer development eliminates the onsite transactional Optionality, likely impacting terminal multiple, in Oppenheimer’s view.