CarLotz Inc. (LOTZ) Prints a Mixed Quarter with Revenue Beating and Profit Missing - William Blair
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William Blair analyst Sharon Zackfia reiterated an Outperform rating on CarLotz Inc. (NASDAQ: LOTZ) after the company reported upside to its fourth-quarter unit sales and revenue guidance in its first post-SPAC earnings release. Retail GPU was in-line while net losses were a few million dollars worse than expectations due to wholesale losses associated with liquidating aged inventory alongside increased investments in direct marketing, corporate and support staff additions, and public company expenses.
The analyst stated "While 2021 will likely be weighted to the back half, we are encouraged by CarLotz’s momentum on the top line and an outlook that remains consistent with pre-SPAC guidance for revenue and GPU. At 7.3 times our 2022 gross profit estimate, CarLotz trades at a more than 40% discount to its peer group, and we see the potential for valuation expansion as the company executes on its rapid growth plan inclusive of our projection for an approximate 12-fold increase in cars sold by 2023. Over the longer term, we see the opportunity for CarLotz to grow to at least 200,000 vehicles sold annually with EBITDA margins of 9% to 11% generating EBITDA of more than $350 million."
Shares of CarLotz Inc. closed at $9.50 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View
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