Analyst Says Buy the Dip on Vroom Stock

The company announced an offering of 9 million shares

Deputy Editor

Sep 9, 2020 at 10:16 AM

The shares of Vroom Inc (NASDAQ:VRM) are down 1% at $55.67 at last check, despite an upgrade from JPMorgan Securities to "overweight" from "neutral." The firm cited the stock's recent pullback as a favorable entry point, and is hopeful about VRM long-term. This adjustment came after the e-commerce name announced third-quarter guidance below analyst estimates, as well as an offering of 9 million shares of its common stock.

The stock is down around 24% in the last week, though still posts a modest year-to-date gain. In the few months VRM has been publicly trading, September would be its first month in the red if current losses hold.

Covering brokerages are looking optimistic heading into today. Seven out of 10 analysts sport a "strong buy" on Vroom stock, while the remaining three boast a tepid "hold." Meanwhile, the 12-month consensus price target of $69.88 is a 24.3% premium to last night's close.

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