Wall Street Sees Upside as CarGurus, Inc. (CARG) Doubles Down on AI Innovations

CarGurus, Inc. (NASDAQ:CARG) is among the best money-making stocks to buy right now. On February 5, Needham trimmed the price target on CarGurus, Inc. (NASDAQ:CARG) to $37 from $44 and maintained a Buy rating. This comes after the analyst’s participation in the National Automobile Dealers Association’s conference, and the analyst believes that concerns about the company being replaced or bypassed are exaggerated at this time. With dealers advised to adopt AI gradually, their focus should be on local brand marketing and customer engagement tools, rather than on using AI to increase sales, the analyst asserted.

Later, on February 11, CarGurus, Inc. (NASDAQ:CARG) announced the expansion of its “Big Deal” brand campaign, featuring the company’s newly launched AI-powered innovations that simplify online research and comparison. This would allow shoppers to make a more personalized and confident decision at the dealership.

“CarGurus was founded to redefine the car shopping experience for consumers, bringing more transparency with data and technology,” stated Dafna Sarnoff, CarGurus, Inc. (NASDAQ:CARG) Chief Marketing Officer. “Now, as the No. 1 most visited car shopping site, we continue to invest in innovations that help consumers get their best deal with confidence, and enjoy the ‘big deal’ experience of finding a car you love.”

Overall, CarGurus, Inc. (NASDAQ:CARG) is a buy from slightly more than half of the analysts covering the stock, with 40% neutral and 7% bearish. With a 1-year median price target of $40.50, the stock has an upside potential 48.13%.

CarGurus, Inc. (NASDAQ:CARG) is a Massachusetts-based online automotive platform operating through two segments: U.S. Marketplace and Digital Wholesale.

While we acknowledge the potential of CARG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.