J.P.Morgan cuts Vroom's PT after co posts Q2 earnings

Vroom

16/08/2021 11:53

** J.P.Morgan cuts the PT for Vroom Inc  VRM.O  by $5 to
$55, saying co's Q2 results were not good enough
    ** Vroom shares up 1.16% in premarket trading 
    ** Brokerage says even though the online used-car seller
posted upbeat Q2 results, it was "not good enough" for investors
after peers Shift Technologies Inc  SFT.O  and Carvana Co
 CVNA.N  beat by a larger degree
    ** Believes investors are concerned around accelerated
investment, hurting both selling, general and administrative
expenses and capex, and thus, related impact on unit economics
and EV 
    ** Co on Thursday reported adj. Q2 loss of 48 cents per
share vs est loss of 49 cents and posted quarterly revenue above
analysts expectations  urn:newsml:reuters.com:*:nL8N2PJ1CO
    ** Eleven of 15 brokerages rate the stock "buy" or higher,
three "hold" and one "sell"; their median PT is $53-Refinitiv
data
    ** Up to Friday's close, stock down ~27% YTD
     

 (Reporting by Amal S in Bengaluru)
 ((Amal.S@thomsonreuters.com; within U.S.+1 646 223 8780;
outside U.S. +91 80 6749 3677;))