TrueCar Gets a Buy Rating from B. Riley

By Jason Carr

In a report released today, Sameet Sinha from B. Riley assigned a Buy rating to TrueCar (NASDAQ: TRUE), with a price target of $21. The company’s shares closed yesterday at $16.11.

Sinha noted:

“We believe this is a function of a fully revamped technology infrastructure and UI as well as the addition of consumer reviews over the last few weeks. Content, especially expert and user generated content, tends to be favored by GOOGL’s algorithms and usually drives up rankings on the SERP . We believe these Search Engine Optimization (SEO) benefits are in the early stages and should become a key driver of traffic over the next few quarters as additional content is layered in by 2Q18. The benefit of organic traffic is it provides zero cost, high intent traffic to the site. Under the current circumstances, where monetization is low for TRUE, we expect the company to cut back on paid advertising to reduce amount of undermonetized traffic leading to reduced ad spend and therefore improved margins.”

According to TipRanks.com, Sinha is a 4-star analyst with an average return of 8.5% and a 65.2% success rate. Sinha covers the Technology sector, focusing on stocks such as Digital Turbine Inc, Limelight Networks, and Angie’s List Inc.

Currently, the analyst consensus on TrueCar is Moderate Buy and the average price target is $18.67, representing a 15.9% upside.

In a report issued on October 29, RBC Capital also assigned a Buy rating to the stock with a $23 price target.

The company has a one-year high of $21.75 and a one-year low of $9.16. Currently, TrueCar has an average volume of 1.47M.

Based on the recent corporate insider activity of 109 insiders, corporate insider sentiment is negative on the stock.

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TrueCar, Inc. engages in the operation of data-driven online platform which provides dealers and automakers with automobile information. It provides pricing transparency about what other people paid for their cars. Its products include Used Cars for Sale, Sell My Car, Local Pricing, and Lease a Car.