Added to YB: 2019-01-18
Pitch date: 2019-01-18
KAR [bullish]
OPENLANE, Inc.
+55.52%
current return
Author Info
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Company Info
OPENLANE, Inc., together with its subsidiaries, operates as a digital marketplace for used vehicles, which connects sellers and buyers in the United States, Canada, Continental Europe and the United Kingdom.
Market Cap
$3.0B
Pitch Price
$18.81
Price Target
60.00 (+105%)
Dividend
N/A
EV/EBITDA
12.30
P/E
32.51
EV/Sales
2.84
Sector
Commercial Services and Supplies
Category
special_situation
KAR Auction Services: Insurance Auto Auctions Spin
KAR Auction Services spinning off salvage auctions unit IAA. ADESA wholesale auctions (30% share) & AFC floorplan financing stay with KAR. IAA (40% salvage share) to trade vs CPRT at discount despite strong growth. SOTP: KAR 10.5x EBITDA, IAA 12x = $60 vs $52 now. Upside: IAA margin expansion, deleveraging, mgmt incentives. Risks: Easy thesis, no shareholder base change.
Read full article (5 min)