Vroom Inc: Gains after strong Q1 results

Vroom

13/05/2021 14:18

** Online used-car seller's shares  VRM.O  up 13.7% at
$40.25 premarket
    ** Company on Wednesday reported smaller-than-expected Q1
loss of $0.57/shr and revenue above estimates, following growth
at its e-commerce unit  urn:newsml:reuters.com:*:nL1N2MZ38C  urn:newsml:reuters.com:*:nBw236Gqja
    ** VRM forecasts Q2 e-commerce unit sales of 17,500 to
18,000  urn:newsml:reuters.com:*:nL8N2MZ82U
    ** Company has taken the first step toward addressing the
execution bottlenecks that plagued its last quarter, Piper
Sandler says; Brokerage cuts PT to $58 from $60
    ** VRM's avg days-to-sale needs to improve, along with gross
profit per unit (GPU) - Piper Sandler
    ** Raymond James raises PT to $53 from $47, says company is
now set to exhibit strong growth and improving GPU
    ** Brokerage views VRM stock as less expensive way to play
the accelerating shift to digital commerce in auto
    ** J.P.Morgan doesn't believe company is "fully out of the
woods yet", says it needs visibility on VRM's sustained
execution for an extended period to re-rate the stock back to
prior peak levels
    ** "We see unit economics improving in 2021 and thereafter,
and we can anticipate the business turning profitable by 2023" -
JPM
    ** 11 of 15 brokerages rate the stock "buy" or higher, 3
"hold" and 1 "sell"; Median PT $55 - Refinitiv data
    ** Company's shares down 13.6% this year as of last close

 (Reporting by Tapanjana Rudra)
 ((Tapanjana.Rudra@thomsonreuters.com))