Wunderlich Securities Starts TrueCar (TRUE) at Hold

Wunderlich Securities initiates coverage on TrueCar (NASDAQ: TRUE) with a Hold rating and a price target of $16.00.

Analyst Blake Harper commented, "TrueCar is an online marketplace that provides new vehicle pricing information to car shoppers and qualified leads to auto dealers. Our checks with dealers confirm the value of TrueCar leads although our survey of car-buying consumers shows limited brand awareness versus larger competitors. A large opportunity exists to more efficiently allocate OEM incentives, but we believe the company may have to spend more than is projected in sales, marketing, and product development to realize its growth strategy, which could delay its projected profitability ramp. Our $16 target is based on our DCF analysis with a 14% discount rate, 3% terminal growth rate, and is 5x our 2015 EV/S estimate growing 38% Y/Y."

For an analyst ratings summary and ratings history on TrueCar click here. For more ratings news on TrueCar click here.

Shares of TrueCar closed at $16.03 yesterday.

You May Also Be Interested In

• Lucid Capital Markets Starts Palmer Square Capital BDC (PSBD) at Neutral
• Cantor Fitzgerald Starts Silence Therapeutics (SLN) at Overweight
• Darden Restaurants (DRI) PT Raised to $235 at Guggenheim