JPMorgan Upgrades Cars.com (CARS) to Overweight

JPMorgan analyst Rajat Gupta upgraded Cars.com (NYSE: CARS) from Neutral to Overweight with a price target of $14.00.

The analyst comments: "We move to Overweight from Neutral on CARS shares and maintain our Dec 2025 PT of $14. We value Cars.com using an EV/EBITDA multiple, where we apply a ~5.5x multiple on our 2026 EBITDA estimate. Our target multiple is a ~40% discount relative to our target multiple of ~9.5x for peer CarGurus given relatively slower growth and margin expansion in recent years, as well as taking into context the typical valuation gap between #1 and #2 players in alternative e-commerce/digital marketplace verticals."

For an analyst ratings summary and ratings history on Cars.com click here. For more ratings news on Cars.com click here.

Shares of Cars.com closed at $12.33 yesterday.

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