CarGurus downgraded to Underweight on execution risk at Piper Sandler

Piper Sandler analyst Alexander Potter downgraded CarGurus to Underweight from Neutral with an unchanged price target of $12. Cars are becoming "unattainably expensive" and this won’t be remedied by easing supply chain issues or post-COVID deflation, the analyst tells investors in a research note. As such, the firm believes car sales are unlikely to revisit historical averages in coming years. The firm cites lower unit sale expectations and execution risk around its CarOffer unit for the downgrade of CarGurus. Piper recommends investors look beyond automotive e-commerce if they want to play the transport technology sector.