William Blair Starts CarLotz Inc. (LOTZ) at Outperform Noting Unique Sourcing and Expansion Model

(Updated - February 16, 2021 8:16 AM EST)

William Blair analyst Sharon Zackfia initiates coverage on CarLotz Inc. (NASDAQ: LOTZ) with a Outperform rating, noting that the company is poised for national expansion in an industry with few national brands.

The analyst stated "With a differentiated sourcing model— including roughly 60% of inventory consigned from corporations—CarLotz provides commercial sellers direct access to retail customers at a favorable profit profile relative to wholesale auctions. CarLotz’s unique “retail remarketing” model, combined with its customer-friendly buying experience (no-haggle pricing and peace of mind afforded by a 3-day/500-mile exchange policy), results in the best deals for both sellers and buyers, yielding an average $1,000 in savings to customers alongside about $1,000 in better profit per car for sellers (versus wholesale auctions). With about 75% of vehicles consigned (including roughly 15% from consumers), CarLotz has limited inventory risk, and we view its corporate relationships as likely to prove sticky over the long term given CarLotz’s ability to deliver higher profits within a hassle-free, low-friction framework."

For an analyst ratings summary and ratings history on CarLotz Inc. click here. For more ratings news on CarLotz Inc. click here.

Shares of CarLotz Inc. closed at $9.20 yesterday.

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