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UBS initiates coverage on CarGurus with Neutral rating, predicts 27.76% price target rise

EditorAmbhini Aishwarya
Published 15/09/2023, 09:46 pm
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UBS initiated its coverage of online automotive marketplace, CarGurus Inc (NASDAQ:CARG), with a Neutral recommendation on Friday. The newly assigned one-year price target stands at $23.37, marking a substantial increase of 27.76% from the firm's latest closing price of $18.29. Analysts also projected an annual revenue of 1,394 million for CarGurus, indicating a growth of 17.65%, and a non-GAAP EPS of 0.74.

Institutional interest in CarGurus has been on the rise recently, as evidenced by an increase in the number of funds holding positions in the company. As of Friday, 494 funds held stakes in CarGurus, up by 10.02% from the previous quarter. However, the average portfolio weight dedicated to CARG witnessed a slight decrease by 0.76% to 0.19%. Over the last three months, institutions have reduced their total shares by 1.82% to 114,765K shares. The put/call ratio for CARG currently stands at 0.41, reflecting a bullish sentiment among investors.

Among the shareholders, Dragoneer Investment Group maintained its stake with no change over the last quarter, holding 9,284K shares which amounts to an ownership of 8.18%. ArrowMark Colorado Holdings owns 9,131K shares or an 8.05% stake in the company after decreasing its share count by 2.37% from the prior quarter but increasing its portfolio allocation in CARG by 14.29%.

Wellington Management Group Llp holds a significant stake as well, with 8,703K shares or a 7.67% ownership in the company which represents a decrease of 55.55% from its previous filing and a reduction of portfolio allocation by 25.68%. IJR - iShares Core S&P Small-Cap ETF holds a stake of 5.53% with 6,281K shares. Foxhaven Asset Management holds 4,164K shares or a 3.67% stake in the company after a decrease of 15.04% from its prior filing and a portfolio allocation reduction by 4.54%.

CarGurus, established in 2006, operates as an online platform connecting buyers and sellers of new and used cars. The company leverages proprietary technology, search algorithms, and data analytics to foster trust and transparency in the automotive search experience. It runs online marketplaces in the United States, Canada, and the United Kingdom under the CarGurus brand, and also operates the Autolist and PistonHeads online marketplaces in the United States and the United Kingdom respectively as independent brands. CarGurus holds a majority stake in CarOffer, a Texas-based instant trade digital wholesale platform.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

 

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