TrueCar (TRUE) Receives a Buy from B.Riley FBR

By Jason Carr

In a report released today, Sameet Sinha from B.Riley FBR reiterated a Buy rating on TrueCar (TRUEResearch Report), with a price target of $16.50. The company’s shares closed yesterday at $11.48.

Sinha said:

“TrueCar (TRUE – Buy, $16.50 PT) reported a lower 3Q and guided 4Q lower; shares were –10.7% AH. The 3Q revenue/AEBITDA came in at $93.6M/$10.0M, versus our estimates of $94.1M/ $10.8M and consensus’ $94.0M/$11.1M, as units were weaker due to higher sales churn; 4Q guidance was tempered for the same reason. With this reset, management laid out its product roadmap and go-to-market strategy, which indicates improved product launches, growth in Trade and OEM, and increased marketing spending, which should start to pay dividends as Capsella launches YE. We believe this will provide accelerating growth and significant operating leverage, post-rollout; we estimate 13%/28% revenue/AEBITDA CAGR from 2017–2020.”

According to TipRanks.com, Sinha is a 4-star analyst with an average return of 4.6% and a 48.2% success rate. Sinha covers the Technology sector, focusing on stocks such as Digital Turbine Inc, Limelight Networks, and Brightcove Inc.

TrueCar has an analyst consensus of Moderate Buy, with a price target consensus of $14.06, representing a 22.5% upside. In a report released today, Benchmark Co. also maintained a Buy rating on the stock with a $16 price target.

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Based on TrueCar’s latest earnings release for the quarter ending June 30, the company reported a quarterly GAAP net loss of $6.62 million. In comparison, last year the company had a GAAP net loss of $9.52 million.

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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. The company products include Used Cars for Sale, Sell My Car, Local Pricing, and Lease a Car.