Gary Prestopino, an analyst from Barrington, maintained the Buy rating on Kar Auction Services (KAR – Research Report). The associated price target is $25.00.
Gary Prestopino has given his Buy rating due to a combination of factors including OPENLANE’s strong financial performance in the fourth quarter of 2024. The company’s revenue and adjusted EBITDA exceeded both internal estimates and consensus expectations, showcasing robust growth momentum.
Additionally, the Marketplace segment displayed significant improvements with a consistent increase in unit volume and a notable rise in adjusted EBITDA. This growth, coupled with effective expense management, suggests a scalable and differentiated business model that could outperform traditional auction models. Furthermore, the Finance segment’s low credit loss provision rate and improving fundamentals point to enhanced risk management capabilities, supporting a positive outlook for future performance.