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Stock impact report

JP Morgan downgrades auto marketplaces amid tariff headwinds [Yahoo! Finance]

KAR Auction Services, Inc (KAR) 
Last kar auction services, inc earnings: 2/18 05:00 pm Check Earnings Report
Company Research Source: Yahoo! Finance
Inc (NASDAQ:TRUE) citing significant headwinds from newly imposed 25% tariffs on imported automobiles and parts. The firm sees prolonged supply disruptions and higher vehicle costs as negative for the overall auto retail ecosystem. JP Morgan cut Openlane and CarGurus to Neutral from Overweight and moved TrueCar to Underweight from Neutral. Despite strong secular trends in US Dealer-to-Dealer (D2D) recently, the off-lease recovery cycle as being potentially pushed out, the note said regarding KAR. CARG's downgrade was attributed to a likely slowdown in pricing tailwinds, while TRUE's outlook was downgraded due to potential for delay in high incremental OEM programs and likely delayed adoption of new products like TC+. The 25% tariffs on imported vehicles and parts are expected to increase average transaction prices (ATPs) by $4,000-$5,300, translating to a 9-12% rise in monthly payments. JP Morgan warned that these tariffs could lead to immediate supply chain disruptions, w Show less Read more
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