In a report released today, Jed Kelly from Oppenheimer initiated coverage with a Buy rating on CarGurus Inc (CARG) and a price target of $42. The company’s shares opened today at $34.40.
Kelly observed:
“We are initiating coverage of CARG shares with an Outperform rating and 12- to 18-month price target of $42. We believe CARG’s proprietary valuation technology and clean user experience are creating sustainable traffic advantages, which, in our view, are evolving into a leading marketing platform for US car dealers. Furthermore, international expansion offers a large opportunity based on executing a similar playbook that disrupted legacy US players with a decade’s head-start. All in, we believe the company is well positioned to gain incremental share of dealer advertising budgets, supporting our five-year 22% annual revenue growth rate, where the company is single-digit percentage of its ~$7B-$8B US TAM.”
According to TipRanks.com, Kelly is ranked #2811 out of 5127 analysts.
CarGurus Inc has an analyst consensus of Strong Buy, with a price target consensus of $53.50.
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CarGurus Inc’s market cap is currently $3.75B and has a P/E ratio of 78.14. The company has a Price to Book ratio of 22.02.
Based on the recent corporate insider activity of 307 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of CARG in relation to earlier this year.
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Cargurus, Inc. engages in the provision of online auto shopping. It operates through proprietary technology, search algorithms, and innovative data analytics to analyze new and used car listings. The company was founded by Langley Steinert in 2006 and is headquartered in Cambridge, MA.
