Following a rating upgrade by Citi, Cars.com shares jumped around +6% Tuesday.
Citi analysts raised their rating on the digital automotive marketplace company to buy from neutral. Analyst Nicholas Jones mentioned in a note to clients that Cars.com’s valuation is low at current levels.
However, Jones left his price target on the stock unchanged at $27.
In its latest quarterly results published in May, Cars.com reported fiscal first-quarter earnings of 28 cents a share, which fell short of Wall Street's expectations of 30 cents a share. Its revenue of $154.20 million during the quarter, however, managed to beat the Street estimates of $152.29 million.