Gordon Haskett initiates CarGurus with a Hold on limited multiple expansion

As previously reported, Gordon Haskett initiated coverage of CarGurus (CARG) with a Hold rating and $35 price target. CarGurus is the market share leader in auto marketplace web traffic and has taken steps to drive increased dealer spend on the platform over recent years. However, the firm sees limited multiple expansion opportunity in the near- and long-term. In the near-term, Gordon Haskett believes there is risk of downward revision to dealer marketplace listing expenditures given tariff-driven pull forward in demand. Longer-term, the firm thinks competitive encroachment concerns will accelerate with Amazon (AMZN) expected to expand its automotive offering to used vehicles.