BTIG Upgrades TrueCar (TRUE) to Buy

BTIG analyst Marvin Fong upgraded TrueCar (NASDAQ: TRUE) from Neutral to Buy with a price target of $3.75.

The analyst comments: "While 2Q24 results were mixed, the shortfall was primarily in the volatile OEM incentive business and overall core fundamentals were actually positive, in our view. We therefore see today's 14% sell-off (and 26% over the past week) as a compelling entry point. Our upgrade is further based on the following points; 1) TC+ has launched, de-risking the operational aspect of this key program. TC+ is the first, fully-digital transaction engine offered by an automotive marketplace, and we believe it is a product TRUE can monetize at a substantially higher rate than the core marketplace; 2) dealer count has turned positive for the first time in 6 quarters and units per dealer rose 11% y/y to the highest level since 4Q21. We see this as confirmation that the selling environment has turned in TRUE's favor after multiple years of a seller's market, which had been net negative for TRUE; 3) Forward EV/Sales has fallen to 0.7x. Historically shares have bottomed around 0.3x and topped out at 1.5-2x, further suggesting more upside than downside at current levels."

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 $2.72 yesterday.

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