Barrington analyst Gary Prestopino has reiterated their bullish stance on KAR stock, giving a Buy rating yesterday.
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Gary Prestopino has given his Buy rating due to a combination of factors that highlight OPENLANE’s strong financial performance and strategic positioning. The company’s Q3/25 results exceeded expectations with an 8% revenue growth to $498 million and a 17% increase in adjusted EBITDA to $87 million, showcasing the effectiveness of its asset-light digital operating model. This model focuses on expanding its marketplace by offering diverse inventory and innovative technology, which has led to increased dealer participation and market share gains.
Furthermore, OPENLANE’s marketplace segment experienced significant growth, with a 9.9% increase in revenue and a 21.8% rise in adjusted EBITDA, driven by a notable increase in dealer vehicles sold. The company’s efforts in brand and platform consolidation, along with technological advancements like AI-driven vehicle recommendations, have attracted more dealers to its platform. Additionally, the finance segment also showed positive growth, contributing to the overall robust performance. These factors collectively support the Buy rating, indicating confidence in OPENLANE’s future prospects.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $29.00 price target.
Based on the recent corporate insider activity of 31 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of KAR in relation to earlier this year.