VRM - Vroom slips after being cut at JPMorgan amid peak used car pricing backdrop

JPMorgan drops its rating on Vroom (NASDAQ:VRM) to Neutral after having the auto retailer set at Overweight. VRM is cut by analyst Rajat Gupta and team due to macro factors as well as company specific variables. "We believe VRM remains a misunderstood story, though we acknowledge that the catalyst to re-rating on fundamentals is likely to remain elusive for the time being with scope for further downside given little earnings/asset/brand value support for valuation currently." While VRM management is expected to present updated medium/long-term targets after Q4 earnings which could serve as a potential catalyst for shares, more conviction is seen being needed on consistent execution on volumes scaling along with GPU improvement to overcome investor skepticism on the current tough capacity ramp and peak used car pricing backdrop. JPMorgan lowers its December 2022 price target on VRM to $15 from $30 prior on lower revenue/GP estimates and also higher discount

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Vroom slips after being cut at JPMorgan amid peak used car pricing backdrop