Assessing CarGurus: Insights From 10 Financial Analysts

10 analysts have expressed a variety of opinions on CarGurus CARG over the past quarter, offering a diverse set of opinions from bullish to bearish.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 2 5 3 0 0
Last 30D 0 1 0 0 0
1M Ago 1 0 1 0 0
2M Ago 0 1 2 0 0
3M Ago 1 3 0 0 0

Insights from analysts' 12-month price targets are revealed, presenting an average target of $38.7, a high estimate of $45.00, and a low estimate of $29.00. Observing a downward trend, the current average is 6.07% lower than the prior average price target of $41.20.

Decoding Analyst Ratings: A Detailed Look

A comprehensive examination of how financial experts perceive CarGurus is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Brad Erickson RBC Capital Maintains Outperform $42.00 $42.00
Kunal Madhukar UBS Raises Neutral $33.00 $29.00
Chris Pierce Needham Lowers Buy $39.00 $45.00
Kunal Madhukar UBS Lowers Neutral $29.00 $36.00
Nicholas Jones JMP Securities Lowers Market Outperform $38.00 $43.00
Rajat Gupta JP Morgan Lowers Neutral $34.00 $42.00
Jed Kelly Oppenheimer Lowers Outperform $42.00 $44.00
Nicholas Jones Citizens Capital Markets Lowers Market Outperform $43.00 $46.00
Rajat Gupta JP Morgan Raises Overweight $42.00 $40.00
Chris Pierce Needham Maintains Buy $45.00 $45.00

Key Insights:

  • Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to CarGurus. This information offers a snapshot of how analysts perceive the current state of the company.
  • Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of CarGurus compared to the broader market.
  • Price Targets: Understanding forecasts, analysts offer estimates for CarGurus's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

To gain a panoramic view of CarGurus's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using our Ratings Table.

Stay up to date on CarGurus analyst ratings.

Discovering CarGurus: A Closer Look

CarGurus Inc is a company that acts as an online automotive marketplace connecting buyers and sellers of new and used cars. The company provides three types of marketplace Listing products, Restricted Listings, and Enhanced or Featured Listings, through which it offers real-time and historical data analyzing the connections and pricing analysis. The listing platforms offer auto manufacturers and others to buy advertising on the company's site and target consumers based on the make, model, and zip code of the cars. The company operates through two segments, namely U.S. Marketplace and Digital Wholesale. It generates maximum revenue from the U.S. Marketplace segment. Geographically, the company derives its key revenue from the United States and the rest from international markets.

CarGurus: A Financial Overview

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: CarGurus's remarkable performance in 3M is evident. As of 31 March, 2025, the company achieved an impressive revenue growth rate of 4.34%. This signifies a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Communication Services sector.

Net Margin: CarGurus's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 17.34%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): CarGurus's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 8.27% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): CarGurus's ROA excels beyond industry benchmarks, reaching 5.16%. This signifies efficient management of assets and strong financial health.

Debt Management: CarGurus's debt-to-equity ratio surpasses industry norms, standing at 0.49. This suggests the company carries a substantial amount of debt, posing potential financial challenges.

Analyst Ratings: Simplified

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

Which Stocks Are Analysts Recommending Now?

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This article was generated by Benzinga's automated content engine and reviewed by an editor.

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