- Vroom (NASDAQ:VRM) lands bullish ratings from Stifel (Buy, $65 price target), JMP Securities (Outperform, $66 PT), Baird (Outperform, $68 PT), Wedbush (Outperform, $64PT) and Wells Fargo (Overweight, $65 PT) as analyst coverage begins.
- Goldman Sachs is more cautious with a ratings initiation on Vroom at Neutral.
- Wells Fargo analyst Zachary Fadem: "VRM appears well positioned to capitalize on a market that remains on the cusp of accelerating online adoption (used auto sub-1% online), with COVID-driven ecommerce tailwinds and LT opportunities from growing brand awareness, an expanding inventory assortment, and improving GPPU profile (via scale benefits, customer-sourcing, and reducing days/sale). While comparisons to industry-leading CVNA appear inevitable, we see room for multiple winners, a path to +DD%+ unit growth for the foreseeable future, gradually improving unit economics, and a 2022 profit inflection."
- Shares of Vroom are up 2.58% to $55.70 in premarket trading and trade 153% above the level IPO was priced.