Oppenheimer Trims Target Price on CarGurus (CARG) to $38

CarGurus Inc. (NASDAQ:CARG) is one of the 15 Most Undervalued NASDAQ Stocks to Buy According to Wall Street Analyst.

On February 24, Oppenheimer trimmed its target price on CarGurus by 5.0% to $38 (from $40) but retained the firm’s Outperform call on the stock. The AI disruption narrative, which compressed valuation multiples of tech and software companies – ultimately driving down CarGuru’s stock price this year (down ~18% year to date)- was a key factor for this target price cut. The firm, however, believes that CARG’s best-in-class used car proprietary valuation data, good dealer relationships, and AI-adoption insulate it from LLM disruption and, thus, the overweight rating.

Oppenheimer also sees potential upside for CARG, as new products and features (such as PriceVantage, New Car Exposure, CG Discover, and Dealership Mode) benefit from the company’s scale, leading to high incremental margins.

Lastly, the firm likes what it saw in management’s 2026 revenue guidance (released on February 19 along with the company’s Q4 2025 earnings), which implied that subscription upgrades and higher new-product attach rates will deliver durable U.S. quarterly average revenue per subscribing dealer (QARSD) pricing.

CarGurus Inc. (NASDAQ:CARG) is an online automotive platform for buying and selling vehicles. The company’s car listings marketplace features digital retail solutions and the CarOffer digital wholesale platform. CarGurus operates through segments, including the customer-facing U.S. Marketplace and the Digital Wholesale division, which provides dealer-to-dealer services and products sold on the CarOffer platform.

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