Goldman Sachs Upgrades KAR Auction (KAR) to Buy

Goldman Sachs upgraded KAR Auction (NYSE: KAR) from Neutral to Buy with a price target of $17 (up from $14).

The firm cited troughing end market, accelerating earnings growth and low valuation. "The market for whole car auctions appears to be forming a bottom, with the yoy rate of volume decline likely to have more than halved from 3Q to 4Q, prompting us to raise estimates," the firm said.

Goldman raised FY4Q11 adjusted EBITDA goes to $112 million versus $106 million prior, 2012 goes to $513 million versus $505 million, and 2013 rises to $559 million versus $550 million.

For an analyst ratings summary and ratings history on KAR Auction click here. For more ratings news on KAR Auction click here.

Shares of KAR Auction closed at $13.49 yesterday, with a 52 week range of $10.92-$21.00.

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