Cars com Inc (CARS) Receives a Buy from B.Riley FBR
In a report released today, Sameet Sinha from B.Riley FBR maintained a Buy rating on Cars com Inc (CARS), with a price target of $34. The company’s shares opened today at $25.90.
“We note that this was one of the possible scenarios laid out in our recent note published on (1/15), in which we reviewed operating/strategic options for the company. Recall, media outlets speculated that the company received inbound interest around May last year and we believe that, by September, the company decided to formally explore these indications of possible interest. The actual process kicks off with the announcement yesterday. We believe the two key considerations to a possible sale are the following: 1) Potential Bidders: CARS’ high FCF operating model makes it screen well for a private equity buyer, but we note there is also business logic for strategic buyers given the company’s well-established scale. Our LBO analysis suggests a PE buyer would pay about $35 per share while a strategic buyer could justify paying more.”
According to TipRanks.com, Sinha is a 4-star analyst with an average return of 2.9% and a 47.6% success rate. Sinha covers the Technology sector, focusing on stocks such as Digital Turbine Inc, Limelight Networks, and Brightcove Inc.
Currently, the analyst consensus on Cars com Inc is a Moderate Buy with an average price target of $31.67, a 22.3% upside from current levels. In a report released today, Craig-Hallum also upgraded the stock to Buy with a $30 price target.
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Cars com Inc’s market cap is currently $1.6B and has a P/E ratio of 9.17. The company has a Price to Book ratio of 0.98.
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Cars.com, Inc. engages in the provision of automotive products and services through online automotive classifieds. It offers a digital automotive marketplace search engine which connects buyers and sellers. It also sells online subscription advertising products to car dealerships.