InvestorsHub Logo
Followers 1113
Posts 117780
Boards Moderated 3
Alias Born 03/27/2007

Re: uranium-pinto-beans post# 345257

Thursday, 04/08/2021 1:22:28 PM

Thursday, April 08, 2021 1:22:28 PM

Post# of 363115
VRM

Vroom: Initiating coverage of digital auto; used car industry ripe for disruption -- Raymond James (39.84 +1.40)
Analyst Nicholas Bacchus noted, "We are initiating coverage of the Digital Auto sector along with two companies: Vroom (Outperform, $47 price target) and Carvana (Market Perform). We are also assuming coverage of CarGurus and are upgrading shares to Outperform with a $34 price target. The Digital Auto sector is a highly dynamic space that is disrupting one of the largest consumer categories, both in the U.S. and globally. We believe that the used auto dealership industry has been slow to move online and to digitize relative to other verticals, which presents a large opportunity for innovative and disruptive operators to gain meaningful share over the next decade. We see Vroom's stock as a less expensive way to play digital auto's secular growth with recent growing pains to improve post 1Q21, and valuation providing compelling risk/reward. We believe that CarGurus will benefit from an industry recovery in 2021 with consensus expectations for dealer count being fairly conservative in our view, and that the company is well positioned to benefit from the industry's online shift with its digital retailing efforts. Finally, while we think that Carvana has a strong first-mover advantage and that capacity growth could drive upside to estimates, we believe that valuation already reflects this and would look to get more constructive on a pullback."

Join the InvestorsHub Community

Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.