Analyst Chris Pierce of Needham reiterated a Buy rating on TrueCar (TRUE – Research Report), reducing the price target to $4.00.
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Chris Pierce’s rating is based on TrueCar’s ongoing progress in their core operations, particularly in new vehicle lead generation. The company is actively expanding its network by adding franchise dealers at a steady rate, which contributes to an increase in new vehicle transactions per dealer. Despite the need for investment in personnel to accelerate dealer growth, which may lead to higher operational expenses in the short term, these strategic moves are expected to enhance growth in the latter half of 2025.
Furthermore, while there is a modest reduction in the revenue and adjusted EBITDA projections for fiscal year 2025, the long-term growth prospects remain promising. The revised price target, set at $4, reflects a valuation based on a multiple of the company’s adjusted EBITDA for fiscal year 2026. This multiple accounts for a discount compared to other auto lead generation companies, yet it underscores the potential for TrueCar to capitalize on its strategic initiatives and market position.
In another report released today, Lake Street also maintained a Buy rating on the stock with a $6.00 price target.