Vroom rallies as KeyBanc shifts to 'overweight'

Vroom

20/01/2022 15:55

** Vroom  VRM.O  shares up 12.3% at $8.27 as KeyBanc
upgrades online used-car seller to 'overweight' from 'sector
weight'
    ** Shares on course for biggest one-day pct gain in 16
months
    ** KeyBanc says VRM's recent acquisition of United Auto
Credit will "materially" increase total addressable market, as
co did very little business prior in the subprime market, which
it estimates at 50% of the used market
    ** VRM has taken many steps to improve customer experience
by bringing functions in-house such as last-mile delivery,
KeyBanc says, which should drive improved consumer offering
    ** KeyBanc sets VRM PT at $13, implying ~77% upside to
stock's last close
    ** On the flip side, KeyBanc downgrades Carvana  CVNA.N  to
'sector weight'
    ** Though KeyBanc sees CVNA as attractive long term, says co
likely entering period of heavier capex as it accelerates its
reconditioning facilities build-out, and is facing "difficult"
GPU (gross profit/unit) comparisons
    ** CVNA's shares up 11.0% at $174.48 on Thurs
    ** Avg rating on VRM among 14 analysts is 'buy' and median
PT is $22 - Refinitiv
    ** With move on the session, VRM's shares have fallen ~77%
over the past year. Stock hit record low on Weds

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))