Cazoo upgraded to Buy from Sell at Berenberg - InvestingChannel

Cazoo upgraded to Buy from Sell at Berenberg

Berenberg analyst Saim Saeed double upgraded Cazoo to Buy from Sell with a price target of $2.33, up from 49c. When reporting first half results last week, management indicated a “significant pivot in strategy” by announcing a review of its European operations, which will likely lead to a full exit, Saeed tells investors in a research note. Such a move would eliminate Cazoo’s funding gap, allow it to better drive the U.K. business and ultimately generate much higher value for shareholders, says the analyst. Saeed believes the shares “do not reflect the value of this move” and says this “key positive catalyst” is playing out sooner than expected.

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