The Analyst Verdict: CarGurus In The Eyes Of 6 Experts

6 analysts have shared their evaluations of CarGurus CARG during the recent three months, expressing a mix of bullish and bearish perspectives.

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 1 2 3 0 0
Last 30D 0 0 1 0 0
1M Ago 0 0 0 0 0
2M Ago 1 1 1 0 0
3M Ago 0 1 1 0 0

Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $36.5, with a high estimate of $42.00 and a low estimate of $29.00. Experiencing a 6.0% decline, the current average is now lower than the previous average price target of $38.83.

Analyzing Analyst Ratings: A Detailed Breakdown

The analysis of recent analyst actions sheds light on the perception of CarGurus by financial experts. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Andrew Boone JMP Securities Maintains Market Perform $38.00 $38.00
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

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: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of CarGurus compared to the broader market.
  • Price Targets: Delving into movements, analysts provide estimates for the future value of CarGurus's stock. This analysis reveals shifts in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of CarGurus's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on CarGurus analyst ratings.

All You Need to Know About CarGurus

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: Delving into Financials

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3M period, CarGurus showcased positive performance, achieving a revenue growth rate of 4.34% as of 31 March, 2025. This reflects 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: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 17.34%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): CarGurus's ROE stands out, surpassing industry averages. With an impressive ROE of 8.27%, the company demonstrates effective use of equity capital and strong financial performance.

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: With a below-average debt-to-equity ratio of 0.49, CarGurus adopts a prudent financial strategy, indicating a balanced approach to debt management.

Analyst Ratings: Simplified

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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

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$33.28-1.25%

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