Cars.com (CARS) Highlighted as a Best Idea for 2022 at Barrington Research for 4 Reasons

Barrington Research analyst Gary Prestopino reiterated an Outperform rating and $25.00 price target on Cars.com (NYSE: CARS), highlighting the company as a best idea for 2022. The company has:

• completed its transformation from a listing service to a technology-driven automotive marketplace solutions provider through its Digital Solutions product suite
• is offering digital products such as Car Social, Fuel and DealerRater
• completed the strategic acquisition of CreditIQ in early November 2021 allowing the company to offer a platform to pre-approve consumers and secure vehicle financing online
• launching a cloud-based platform in Q2/21 to reduce the reliance on physical digital centers

These changes have positively impacted the financials with the analyst stating "Free cash flow YTD as of the end of Q3/21 totaled $98.6 million versus $84.3 million for the comparable period of 2020. Year to date, debt payments have totaled $107.5 million, reducing net leverage to 2.3x at the end of Q3/21 from 3.8x at the end of Q3/20. Long-term debt at the end of Q3/21 totaled $471 million with stockholders’ equity of $366 million."

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 $16.54 yesterday.

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