BTIG analyst Marvin Fong maintained a Buy rating on Cars (CARS – Research Report) yesterday and set a price target of $21.00.
Marvin Fong has given his Buy rating due to a combination of factors that highlight both challenges and opportunities for Cars. Despite a mixed quarterly report and industry uncertainties, the stock’s sell-off has resulted in an attractive valuation, making it a compelling buy. Although Cars missed revenue expectations, it exceeded EBITDA forecasts, and the company anticipates a strong performance in the latter half of the fiscal year.
Furthermore, Cars is optimistic about future growth, with plans to expand its subscription packages and increase dealer count. The recent acquisition of DealerClub has already shown positive results, and endorsements from major OEMs are expected to contribute to future earnings. Additionally, the company’s robust ad revenue growth and a significant buyback authorization further support the Buy rating. Overall, while there are macroeconomic risks, the current valuation presents a favorable opportunity for investors.
Fong covers the Consumer Cyclical sector, focusing on stocks such as Cars, RealReal, and Beyond Inc. According to TipRanks, Fong has an average return of -3.2% and a 40.26% success rate on recommended stocks.
In another report released yesterday, D.A. Davidson also maintained a Buy rating on the stock with a $14.50 price target.