RumbleON Inc Gets a Buy Rating from Maxim Group

By Jason Carr

In a report released today, Nehal Chokshi from Maxim Group reiterated a Buy rating on RumbleON Inc (NASDAQ: RMBL), with a price target of $8. The company’s shares closed yesterday at $5.07.

Chokshi commented:

“RMBL reported 1Q18 earnings yesterday with better-than-expected revenue ($8.1M vs. our estimate of $6.6M and the guidance range of $7.2M – $7.5M) and gross margin (6.9% reported GM vs. our estimate of 1.5%). Significant margin enhancement stemming from favorable vehicle processing economics through dealer and auction partner networks gives us confidence that 11% LT GM is achievable, up from our prior estimate of 6.8% long-term. We expect 70bps of the 420bps GM raise will flow through to operating profit, resulting in a raised 12-month target to $8, from $7.”

According to TipRanks.com, Chokshi is a 5-star analyst with an average return of 15.3% and a 60.8% success rate. Chokshi covers the Consumer Goods sector, focusing on stocks such as Hewlett Packard Enterprise, Palo Alto Networks, and Pure Storage Inc.

RumbleON Inc has an analyst consensus of Moderate Buy, with a price target consensus of $8.

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The company has a one-year high of $10 and a one-year low of $3.40. Currently, RumbleON Inc has an average volume of 34.52K.

Based on the recent corporate insider activity of 9 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of RMBL in relation to earlier this year.

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RumbleON, Inc. is a development stage company, which engages in designing and developing a computer application software for mobile phones and tablet computers. The company was founded by Matthew Lane on October 24, 2013 and is headquartered in Charlotte, NC.