Barrington Research Reiterates Outperform Rating for Cars.com (NYSE:CARS)

Cars.com is an online automotive marketplace that connects car buyers and sellers in the United States. The company was founded in 1995 and has since grown to become one of the largest online car retail platforms in the country.

On Thursday, Barrington Research reaffirmed its "outperform" rating for Cars.com's NYSECARS stock. This means that the analysts at Barrington Research believe that the stock is undervalued and has the potential to outperform the broader market. The firm also set a target price of $25.00 on the stock, which represents a potential upside of 42.61% from Cars.com's previous close.

Barrington Research's positive outlook for Cars.com is based on several factors. One key driver of the company's growth is its strong position in the online car market. According to recent data, Cars.com is the second-largest online car retail platform in the United States, with a market share of 17.5%. This puts it ahead of other major players in the industry, such as Autotrader and CarMax.

Another factor that Barrington Research sees as favorable for Cars.com is the company's strong financial performance. In its most recent quarter, Cars.com reported revenue of $170.3 million, which represents a 24% increase from the same period in the previous year. The company also has a healthy balance sheet, with no long-term debt and a cash reserve of $56.9 million as of March 31, 2021.

Overall, Barrington Research's positive outlook for Cars.com is based on the company's strong position in the online car market, its solid financial performance, and other factors that suggest the stock has significant upside potential.