There’s a lot to be optimistic about in the Services sector as 2 analysts just weighed in on CarGurus Inc (NASDAQ:CARG) and Navigator Holdings (NYSE:NVGS) with bullish sentiments.
CarGurus Inc (CARG)
In a report released today, Daniel Kurnos from Benchmark Co. maintained a Buy rating on CarGurus Inc, with a price target of $50. The company’s shares closed yesterday at $45.59, close to its 52-week high of $46.55.
Kurnos wrote:
“We believe that mid-teens AARSD growth is sustainable, although incremental leverage is likely to be reinvested in audience growth and product development, deepening the Company’s moat and justifying valuation. 2Q18 revenue of $110.3 million was up 45% y/y, beating consensus by $6.5 million mostly on strength in AARSD. We continue to believe the free end of the freemium tail is far from exhausted, but now have a much less aggressive view on pace of domestic dealer adds, calling for just 10% growth in 2018 and only 5% growth in 2019. As an offset, however, US AARSD grew 19% y/y, and we have raised our forecast for the year from 15% to 16%, with an equivalent increase expected in 2019.”
According to TipRanks.com, Kurnos is a 5-star analyst with an average return of 12.4% and a 56.1% success rate. Kurnos covers the Services sector, focusing on stocks such as Chicken Soup For The Soul Entertainment Inc, Booking Holdings Inc, and Sinclair Broadcast.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for CarGurus Inc with a $50 average price target, a 9.7% upside from current levels. In a report released today, RBC Capital also upgraded the stock to Buy.
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Navigator Holdings (NVGS)
Maxim Group analyst James Jang reiterated a Buy rating on Navigator Holdings today and set a price target of $16. The company’s shares closed yesterday at $12.05.
Jang wrote:
“NVGS reported 2Q18 net revenues of $58 million, EBITDA of $27.2 million, and operating loss of $(0.06), which were all below ours and consensus estimates due to the closure of the Marcus Hook terminal, limiting the Atlantic Basin LPG trade.”
According to TipRanks.com, Jang is a 4-star analyst with an average return of 19.9% and a 50.5% success rate. Jang covers the Services sector, focusing on stocks such as Dynagas LNG Partners LP, Nordic American Tanker, and Eagle Bulk Shipping.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Navigator Holdings with a $14.65 average price target.
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