Openlane initiated with an Equal Weight at Stephens

Stephens analyst Jeff Lick initiated coverage of Openlane (KAR) with an Equal Weight rating and $20 price target Both ACV Auctions (ACVA) and Openlane’s primary business is wholesale auto auctions, a 26M unit market “we refer to as the used car underworld as it sits below the retail market and supports its functioning,” the analyst tells investors. The firm believes the next few quarters could look better for both as new vehicle inventories create increased wholesale used supply flowing via trade-ins, but the mid-term outlook is likely “competitive, evolving and uncertain,” the analyst added.