Needham & Company analyst Chris Pierce raised the price target on CarGurus Inc. (NASDAQ: CARG) to $52.00 (from $46.00) while maintaining a Buy rating.

The analyst commented, "We reiterate our Buy rating and raise our price target to $52 post 4Q results that checked the boxes of our bullish thesis for our '22 top pick. CARG's legacy subscription business continues to be resilient in the face of a sluggish macro backdrop, with levers to pull to realize growth when the used car market normalizes. CARG's new Wholesale and Product revenue line items showed the versatility of the CarOffer acquisition, driving D2D wholesale market share as CARG participates in the digital transformation of dealer inventory sourcing, while leveraging CARG's consumer marketplace to source unique supply via Instant Max Cash Offer. Our new $52 target represents a 22x multiple (unchanged vs prior) on our new, higher '22 EBITDA estimate."