CarGurus extends fall as multiple brokerages cut PTs

CarGurus

09/11/2022 14:03

** Shares of online car marketplace CarGurus Inc  CARG.O  fall
as much as ~25% to $10.20 premarket, following PT cuts from at
least six brokerages 
    ** Stock set to open at record low
    ** Brokerages cut PT after CARG's FY22 adj EPS forecast of
$1.02 to $1.05 comes in below Wall Street est of $1.17, as
operational complexity erodes margins 
    ** Piper Sandler cuts PT to $12 from $31; stays "neutral" on
stock 
    ** Says co's decision to acquire wholesale auction platform
CarOffer was agreeable, but increases operational complexity
    ** Adds that CARG is compelled to shoulder costs associated
with settling wholesale price disputes as used-car prices fall
    ** Truist cuts PT to $22 from $31; maintains "buy" rating 
    ** Says wholesale price volatility affects CarOffer,
alongside weak dealer demand 
    ** Four other brokerages including Needham, RBC and Raymond
James, cut PTs on stock
    ** Eleven of 13 brokerages rate the stock "buy" or higher
and 2 "hold"; median PT is $21 - Refinitiv IBES 
    ** Stock down ~59% YTD, as of last close
 (Reporting by Anirban Chakroborti in Bengaluru)
 ((Anirban.Chakroborti@thomsonreuters.com;))