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KAR: Rising Earnings Outlook and AI Technology Will Drive a Market Upswing

Update shared on 26 Nov 2025

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AnalystConsensusTarget's Fair Value
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1Y
29.4%
7D
2.8%

Analysts have maintained their price target for OPENLANE at $31.81, citing consistent revenue growth estimates as well as only minor adjustments to discount rates and profit margins in their latest review.

What's in the News

  • OPENLANE revised its 2025 earnings guidance, now expecting income from continuing operations between $139 million and $144 million. This compares to the previous range of $132 million to $140 million. However, the company anticipates a diluted loss from continuing operations per share between $1.32 and $1.28, which contrasts with the prior guidance of positive earnings of $0.61 to $0.66 per share (Key Developments).
  • The company completed the repurchase of 53% of its Series A Convertible Preferred Stock and amended its credit agreement. It also secured an additional $550 million in term loans to finance these buybacks (Key Developments).
  • OPENLANE launched Audio Boost AI on its US marketplace. This new feature uses AI and a proprietary database of over 1.2 million engine recordings to help dealers quickly assess vehicle engine conditions through advanced audio analysis and visual highlights. The feature is designed to enhance trust and consistency in vehicle evaluations (Key Developments).

Valuation Changes

  • Consensus Analyst Price Target remains unchanged at $31.81 per share.
  • Discount Rate decreased marginally from 8.15% to 8.14%.
  • Revenue Growth estimate is steady at 6.47%.
  • Net Profit Margin declined slightly from 11.01% to 11.00%.
  • Future P/E ratio has increased fractionally from 16.61x to 16.63x.

Disclaimer

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