BofA Securities raises Kar Auction stock price target to $29 on strong results

Published 06/08/2025, 18:06
BofA Securities raises Kar Auction stock price target to $29 on strong results

Investing.com - BofA Securities raised its price target on Kar Auction (NYSE:KAR) to $29.00 from $26.00 while maintaining a Neutral rating on the stock. The company’s shares have shown remarkable strength, delivering a 47.55% return over the past year and currently trading near its 52-week high of $26.04.

The price target increase follows OpenLane’s reported revenue of $481.7 million and EBITDA of $86.7 million, which exceeded BofA’s estimates of $453.5 million and $78.7 million respectively.

The company sold 380,000 cars during the period, surpassing BofA’s projection of 368,000 units. Marketplace revenue came in 9% above expectations, while Finance revenue was 2% below forecasts.

Marketplace EBITDA reached $45 million, exceeding BofA’s $37 million projection. The company’s consolidated gross margin beat expectations by 84 basis points, and its consolidated EBITDA margin was 66 basis points higher than anticipated.

Management raised its full-year guidance for operating profit and EBITDA, while noting there are still many questions and unknowns regarding tariffs.

In other recent news, OpenLane Inc. reported its second-quarter 2025 earnings, which exceeded market expectations. The company achieved an earnings per share (EPS) of $0.33, surpassing the forecasted $0.22. This performance represents a 50% earnings surprise. OpenLane also reported revenue of $482 million, which was higher than the anticipated $454.5 million. These results are seen as positive developments for the company. The earnings announcement led to significant interest from investors. Additionally, analysts from various firms may evaluate these results to adjust their projections and recommendations. These recent developments highlight the financial strength and potential of OpenLane Inc.

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