Analyzing CarGurus: Insights from 6 Analysts
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 06 2025
0mins
Should l Buy CARG?
Source: Benzinga
Analyst Ratings Overview: In the last three months, 6 analysts have provided varied ratings for CarGurus, with 2 bullish, 1 somewhat bullish, and 3 indifferent ratings, reflecting a shift in sentiment over time.
Price Target Insights: Analysts have set an average 12-month price target of $39.00 for CarGurus, with a high estimate of $44.00 and a low of $35.00, indicating a slight increase from the previous average of $37.80.
Financial Performance Highlights: CarGurus has shown a revenue growth rate of approximately 7.01% and maintains a strong net margin of 9.55%, alongside a return on equity (ROE) of 5.34% and return on assets (ROA) of 3.16%, outperforming industry averages.
Company Profile: CarGurus operates as an online automotive marketplace, primarily generating revenue from its U.S. Marketplace segment, and offers various listing products to connect buyers and sellers of vehicles.
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Analyst Views on CARG
Wall Street analysts forecast CARG stock price to rise
9 Analyst Rating
6 Buy
3 Hold
0 Sell
Moderate Buy
Current: 26.960
Low
40.00
Averages
42.38
High
45.00
Current: 26.960
Low
40.00
Averages
42.38
High
45.00
About CARG
CarGurus, Inc. (CarGurus) offers a multinational, online automotive platform for buying and selling vehicles that offer both digital retail solutions and the CarOffer digital wholesale platform. The CarGurus platform enables consumers to purchase and/or sell a vehicle either online or in-person, and it gives dealerships the power to accurately price, instantly acquire, effectively market, and quickly sell vehicles, all with a nationwide reach. It operates through two segments: U.S. Marketplace and Digital Wholesale. The U.S. Marketplace segment provides marketplace services for customers within the United States. Digital Wholesale segment provides Dealer-to-Dealer and Instant Max Cash Offer (IMCO) services and products which are sold on the CarOffer platform. The Company operates online marketplaces under the CarGurus brand in Canada and the United Kingdom. It also operates independent brands, the Autolist and PistonHeads online marketplaces in the United States and the United Kingdom.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Clothing Sales: Clothing stores saw a 7.5% year-over-year increase, providing positive signals for mall retailers like Gap and Urban Outfitters, suggesting enhanced consumer potential during the holiday season.
- Outstanding Nonstore Retail Performance: The nonstore retail category outperformed with a 7.2% year-over-year increase in November, crucial for e-commerce players like Amazon and Wayfair, reflecting strong demand during the holiday shopping season.
- Underperformance in Auto Dealers: The auto dealer group experienced a 1.1% year-over-year decline in November, indicating challenges for the sector that may affect the performance of related companies.
See More
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- Executive Participation: CarGurus CEO Jason Trevisan is scheduled to participate in a fireside chat at the 28th Annual Growth Conference on January 13, 2026, showcasing the company's leadership in the automotive shopping sector.
- Investor Relations: The event will feature a live webcast accessible from the company's Investor Relations page, ensuring that investors can stay updated on the latest company developments, thereby enhancing transparency and trust.
- Information Archiving: An archive of the presentation will be available on the company’s website for 90 days post-event, allowing investors who cannot attend live to review the content, further improving information accessibility.
- Market Position: CarGurus is recognized as the most visited automotive shopping site in the U.S., leveraging its extensive inventory selection and dealer network to continuously foster trust and transparency between consumers and dealers.
See More
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- Settlement Amount: Tyson Foods and Cargill have agreed to pay a total of $87.5 million to settle an antitrust lawsuit concerning beef price manipulation from 2014 to 2019, which is expected to impact numerous consumer compensation claims.
- Lawsuit Background: Multiple meat manufacturers are accused of entering into non-compete agreements that led to increased beef prices, allowing consumers to file claims for cash settlements by submitting a claim form by June 30, 2026.
- Consumer Options: Consumers have the option to accept cash payments, opt out of the lawsuit, or object to the settlements, with all requests needing to be submitted by March 30, 2026, to protect their rights.
- Court Hearing: A fairness hearing is scheduled for May 12, 2026, in the U.S. District Court for Minnesota, where the judge will decide on the approval of the settlement, potentially affecting the timeline for future compensation payments.
See More
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- Market Performance: Duos Technologies shares closed at $10.17 on Monday, suggesting that despite the price target increase, the market remains cautious about its potential, as the current price is still below the new target.
- Maison Solutions Target Adjustment: Ascendiant Capital also raised the price target for Maison Solutions Inc. from $4.25 to $4.5 while maintaining a Buy rating, reflecting optimism about its business outlook.
- Mereo BioPharma Downgrade: Jefferies cut the price target for Mereo BioPharma Group plc from $7 to $0.5 and downgraded the stock from Buy to Hold, indicating concerns about its future performance.
See More
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- Rising Ownership Costs: In 2025, the total cost of ownership for used vehicles increased by 36% compared to 2019, while new models saw a 29% rise, compelling consumers to prioritize affordability and impacting market supply and demand dynamics.
- Consumer Behavior Adjustment: Demand for new vehicles in 2025 focused on efficient powertrains and reliable brands, with the fastest-selling models like Toyota's hybrids averaging under 20 days on the market, indicating a strong preference for budget-friendly options.
- Hybrid Demand Growth: Following the expiration of EV tax credits, retail sales of hybrids surged by 33% in 2025, with new inventory rising nearly 18% year-over-year, reflecting consumers' shift towards more cost-effective choices.
- 2026 Outlook: New car pricing is expected to play a larger role in market trends in 2026, and as the chip shortage eases, the supply of late-model used vehicles may improve, potentially alleviating pressure on older models in the market.
See More
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Alta Fox Capital's Investment: Alta Fox Capital has acquired 1,098,700 shares of CarGurus, valued at approximately $40.90 million, making it the fund's 4th-largest holding and representing 9.1% of its reportable assets.
CarGurus Overview: CarGurus operates a leading digital platform in the automotive market, focusing on connecting buyers and sellers while leveraging data-driven insights to enhance vehicle transactions.
Market Performance: As of December 8, 2025, CarGurus shares were priced at $35.84, reflecting a 1-year return of -7%, underperforming the S&P 500 by 20 percentage points.
Investment Strategy: Alta Fox's investment aligns with its strategy of targeting undervalued small-cap stocks, and despite some challenges, CarGurus maintains a strong market position and has shown resilience with a free cash flow margin of 17%.
See More
