UBS has revised its price target for Cars.com (CARS, Financial), lowering it from $15 to $13, while maintaining a Neutral rating on the stock. This adjustment reflects emerging trade policies that have increased the cost of vehicle production, thereby elevating consumer prices and damping demand.
The financial strain on the supply chain due to potential production disruptions has been highlighted as another concern. These challenges are anticipated to have a significant impact on suppliers' financial health. As structural changes in the automotive industry come to the forefront, UBS remains skeptical about the ability of auto stocks to fully rebound, even in the event of a reduction in tariffs. This outlook suggests a cautious approach for investors considering the sector's future performance.
