Citizens JMP reiterates Market Perform rating on CarGurus stock

Published 26/08/2025, 09:56
Citizens JMP reiterates Market Perform rating on CarGurus stock

Investing.com - Citizens JMP has reiterated its Market Perform rating on CarGurus Inc. (NASDAQ:CARG), maintaining its neutral stance on the used car marketplace. The company, currently trading at $34.11, demonstrates strong financial health with an impressive 86.86% gross profit margin and maintains more cash than debt on its balance sheet.

The firm’s decision follows its assessment of Amazon’s recent entry into the automotive retail space with Amazon Autos.

Citizens JMP conducted conversations with six dealers currently listed on the Amazon marketplace to evaluate potential competitive threats.

Based on these discussions, the firm concluded that Amazon Autos does not pose a significant threat to digital auto retailers like Carvana (NYSE:CVNA) or to used car marketplaces like CarGurus .

Citizens JMP maintains a Market Outperform rating on Carvana with a price target of $460, while it has a Market Outperform rating on Amazon (NASDAQ:AMZN) with a price target of $285.

In other recent news, CarGurus reported its Q2 2025 earnings, surpassing Wall Street expectations with an earnings per share (EPS) of $0.57, compared to the forecasted $0.54. The company also reported a revenue of $234 million, slightly above the predicted $232.68 million. Additionally, CarGurus announced it will wind down its CarOffer business, which has been a liability for several years. This decision led RBC Capital to lower its price target for CarGurus to $40 from $42, although they maintained an Outperform rating on the stock. RBC noted that despite CarOffer’s challenges, it had provided some bottom-of-funnel optionality that supported their positive outlook. These developments reflect ongoing changes within the company as it navigates its business strategy.

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