- CarGurus operates an attractive platform connecting car buyers and dealerships, with a strong track record of revenue growth.
- Successful platforms tend to have superior economics due to network effects, and it appears CarGurus has reached critical mass with its car buying platform.
- The company has attractive free cash flow generation and a scalable business model that the company is now trying to replicate in other markets such as Canada and the UK.
- Our estimated fair value is higher than where shares currently trade, so we believe they present an attractive buy opportunity.
For further details see:
CarGurus Is An Attractive Platform Business Currently In Buy Territory