Will Continue Its Growth Streak In 2023, Says Analyst

  • Barrington Research analyst Gary Prestopino reiterated an Outperform rating on the shares of Inc CARS with a target price of $25.00.
  • The analyst believes that the company is poised for consistent growth for the remainder of 2022 and all of 2023, having completed its transformation from a listing service to a technology-driven automotive marketplace solutions provider through its digital solutions product suite.
  •'s growth strategy is being driven by connecting buyers and sellers of vehicles through a range of digital solutions across a common technology platform that simplifies vehicle purchase activity, added Prestopino. 
  • Also Read:  Hertz Global To Buy 175,000 EVs From General Motors
  • Driven by new dealers, increased dealer retention, and digital solutions, dealer-generated subscription-based revenues have increased for eight consecutive quarters from $124 million in Q3 FY20 to $143 million in Q2 FY22.
  • The company's end-to-end digital solutions are driving growth in revenue despite a challenging environment for new and used vehicle sales stemming from supply constraints.
  • Prestopino also noted that has a significant dealer and advertising TAM for growth.
  • The analyst specified that the company's financial results and long-term outlook continue to improve, but it is not reflected in the stock's valuation.
  • Price Action: CARS shares are trading higher by 1.03% at $11.77 on the last check Wednesday.
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