Added to YB: 2026-10-15
Pitch date: 2026-10-13
CARG [bullish]
CarGurus, Inc.
+3.06%
current return
Author Info
No bio for this author
Company Info
CarGurus, Inc. operates an online automotive platform for buying and selling vehicles in the United States and internationally.
Market Cap
$2.5B
Pitch Price
$29.13
Price Target
73.00 (+149%)
Dividend
N/A
EV/EBITDA
8.70
P/E
18.69
EV/Sales
2.68
Sector
Interactive Media and Services
Category
value
CarGurus ($CARG): The Auto Trader of America, Priced Like a Used Car
CARG (hold): CarGurus is a 92%-gross-margin automotive marketplace and dealer-software business whose US dealers pay about one-third less than Auto Trader UK retailers, leaving pricing headroom. At ~$29, it trades near 11x 2026 non-GAAP EPS with an 11-12% FCF yield; 2029 EPS of ~$3.45-3.50 at 21x implies $72-73 and ~36% annual returns. AI fears look overdone given validated data and dealer tools; subscriptions dampen cyclicality, though AI disintermediation and dealer caution remain risks; a small position is held, with an addition under consideration.
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