CARG - CarGurus lands on Needham's Conviction List with new markets ready to be tapped

CarGurus (NASDAQ:CARG) is named a top pick at Needham for 2022 and added to the firm's Conviction List Analyst Chris Pierce and team think the recent pullback in the stock offers a chance to own a "compelling transformation" story at an attractive price as the retailer pushes further into new markets. CARG is seen having the potential to penetrate the peer to peer vehicle transaction market (11M transactions annually) and the dealer to dealer wholesale market (14M transactions annually). "CARG is already showing strong execution in the digital dealer to dealer used vehicle wholesale market, and we now think they can penetrate the offline peer to peer used vehicle market as well, while laying the groundwork to turn their vehicle marketplace into an asset light DTC used vehicle platform." Needham has a Buy rating on CARG and price target of $46, which works out to an EV/EBITDA multiple of 22X

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CarGurus lands on Needham's Conviction List with new markets ready to be tapped