RBC Capital Cuts Price Target Following TrueCar's (TRUE) Weak 4Q and Guidance

RBC Capital reiterated a Sector Perform rating on TrueCar (NASDAQ: TRUE), and cut the price target to $6.00 (from $10.00), following the company's 4Q earnings report. Revenue was $63.6MM, below Street estimates of $65.3, and prior guidance of $64.0-65.5MM. Management also provided forward guidance that is well below expectations. 1Q / 2016 Revenue guidance is $60-62 / 270-275MM vs. Street estimates of $70 / 310MM.

Analyst Mark Mahaney commented, "Q4 results were lower than expected, but the bigger factor was guidance meaningfully below forecasts. New CEO Chip Perry ID’ed, we believe correctly, the pivotal issues that must be addressed to position TRUE for long-term (profitable) growth. Material changes are necessary, but investments will take time to bear fruit. We decrease our estimates and PT to $6; maintain Sector Perform."

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 $5.77 yesterday.

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