Cars.com Shares Fall 6% After JPMorgan Cuts Price Target to $10
Cars.com shares dropped 6% after JPMorgan cut its price target to $10 from $16 and downgraded the stock to Neutral following fourth-quarter earnings. The company reported adjusted EPS of $0.44, 19.7% below estimates, with Q4 revenue growing 1.9% to $183.9 million and full-year 2026 revenue forecast flat to up 2%.
1. Downgrade and Price Target Adjustment
Cars.com was downgraded to Neutral by JPMorgan, which lowered its price target to $10 from $16, citing management commentary that provided limited clarity on when growth might rebound.
2. Q4 Earnings and Profit Metrics
In the fourth quarter, Cars.com reported adjusted EPS of $0.44, 19.7% below consensus estimates, and revenue of $183.9 million, up 1.9% year-over-year, while adjusted EBITDA came in at $54.9 million, missing analyst forecasts.
3. Outlook and Market Reaction
The company forecast full-year 2026 revenue flat to up 2% year-over-year; shares declined 6% in one session, contributing to a 28.5% year-to-date drop and trading 37.6% below its 52-week high.