CarGurus (CARG: NASDAQ)

CarGurus (CARG) is an online platform for buying and selling automobiles. Investors are increasingly bullish on CARG, spurred by a 3% increase in average monthly users on the platform, indicating strong consumer engagement. CEO Jason Trevisan highlighted the company’s progress in becoming the leading digital destination for both consumers and dealers.

This optimism is reflected in the market, with several sell-side analysts upgrading their price targets for CARG. JPMorgan Chase & Co. raised their target from $29.00 to $32.00, while BTIG Research lifted theirs from $28.00 to $30.00, also giving the stock a “Buy” rating.

Trevisan noted that CarGurus’ Marketplace business has seen the largest quarterly revenue increase since 2021, driven by higher adoption of add-on products, a shift towards premium subscription tiers, and expansion in its global paying dealer base.

We are bullish on CARG above $23.00-$24.00, with an upside target of $35.00-$36.00.

El Dorado Gold (EGO: NYSE)

El Dorado Gold (EGO) is a mining company with operations in Turkey, Canada, Greece, and Romania. In the first quarter of 2023, the company reported a 21% year-over-year increase in production, which led to a reduction in all-in sustaining costs from $1,346 per ounce in 2022 to $1,184 this year.

El Dorado Gold also entered into a significant agreement with TRU Precious Metals, giving it the option to acquire an 80% interest in the Golden Rose gold-copper project in Newfoundland, Canada. This deal involves C$8.25 million ($6m) in staged cash payments and C$7 million ($5m) in exploration spending.

Despite maintaining its production guidance for the year, the company hinted that production could increase, which may bring more positive news for investors. This strong quarterly performance has been well-received, leading to a boost in the stock price.

We are bullish on EGO above $14.50-$15.00, with an upside target of $21.00-$22.00.