Wedbush Raises Vroom’s PT On Strong Business Model

Wedbush increased Vroom’s price target to $80 (42% upside potential) from $75 and reiterated a Buy rating, saying that its strong business model helped it weather through COVID-19 pandemic.

Wedbush analyst Seth Basham wrote in a note to investors on Thursday that Vroom’s (VRM) “first quarterly results as a public company further validated the business model, showing how its technology and operational infrastructure enabled it to scale back the business at the outset of the pandemic and then quickly pivot toward surging growth in May as demand signals picked up.”

On Aug. 12, Vroom reported better-than-expected results for 2Q. The company’s revenues of $253.1 million beat analysts’ expectations of $234.9 million. The online car retailer’s adjusted loss per share of $0.34 was compared with Street estimates for a loss of $0.70.

Currently, the Street has a cautiously optimistic outlook on the stock. The Moderate Buy analyst consensus is based on 7 Buys and 3 Holds. The average price target of $64.78 implies upside potential of about 15%. (See VRM stock analysis on TipRanks).

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