CarGurus

CARG · NASDAQ

$31.66+$0.64 (+2.06%)TodayMarket closed · Oct 20, 4:23 PM ET

Prev close $31.02

CARG analyst rating

BuyConsensus of 12 analysts over the last 12 months. 58% rate it a buy.

Strong buy0
Buy7
Hold5
Underperform0
Sell0

12-month price target · 16 analysts

Average $41.88 (+32.3% upside)

Low: $34.34
Now: $31.66
High: $48.30

Upgrades and downgrades

The latest rating actions, newest first

CARG analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
UBS	Oct 7, 2026	Maintains	Neutral	$40.00 → $35.00	39%
Barclays	Oct 6, 2026	Maintains	Overweight	$41.00 → $38.00	28%
Citigroup	Aug 14, 2026	Maintains	Neutral	$32.00 → $39.00	56%
Oppenheimer	Aug 12, 2026	Maintains	Outperform	$38.00 → $44.00	58%
Barclays	Aug 10, 2026	Maintains	Overweight	$40.00 → $41.00	28%
UBS	Aug 7, 2026	Maintains	Neutral	$37.00 → $40.00	39%
RBC Capital	Aug 7, 2026	Maintains	Outperform	$35.00 → $42.00	54%
Needham	Aug 7, 2026	Maintains	Buy	$43.00 → $44.00	33%
BTIG	Aug 7, 2026	Maintains	Buy	$40.00 → $41.00	45%
Barclays	Jul 22, 2026	Maintains	Overweight	$35.00 → $40.00	28%

The case for and against

Updated Oct 14, 2026

Bull case

CarGurus is supported by resilient marketplace demand, as Q2 revenue of $251 million rose 13% year over year and slightly beat Street expectations, with U.S. and international QARSD up 8% and 11% respectively. Strong dealer adoption of add-on products, upgrades, and AI-driven tools such as PriceVantage, VINMax, and Guru is expanding lead volume and conversion quality, while average dealer activity rose 28% year over year and Guru-driven leads increased 60% sequentially. Profitability is also improving, with adjusted EBITDA of $85 million up 7% year over year and margins near 34%, and management raised full-year margin outlook on productivity gains, disciplined execution, and the elimination of CarOffer-related drag.

Bear case

CarGurus is facing a negative fundamental setup as dealers are slowing decision-making, reducing spend amid margin pressure, and only gradually returning as market uncertainty eases, which has hurt dealer acquisition and capped monetization of products like Price Vantage and New Car Exposure. Its U.S. Marketplace remains the main revenue engine, but slower-than-expected adoption, residual CarOffer integration issues, and weaker compliance and lead conversion tied to FTC pricing transparency are delaying expected inventory-product benefits and competitive gains. Management has already trimmed FY26 revenue to $1,015MM from $1,017MM and expects only 342 U.S. dealer adds versus 617 prior, underscoring limited operating momentum and elevated downside risk.

Information on this page is provided for informational purposes only and is not a recommendation to buy, sell or hold any security. Investing involves risk, including possible loss of principal. Market data is delayed at least 15 minutes and is provided without warranty. Analyst ratings, price targets and company data come from third-party sources. Past performance does not guarantee future results.