RumbleON price target lowered to $7 from $9 at B. Riley

B. Riley analyst Eric Wold lowered the firm’s price target on RumbleON (RMBL) to $7 from $9 and keeps a Buy rating on the shares. RumbleON’s Q3 results were generally in line with the firm’s estimates, though below consensus, as the difficult macro environment and continued moves to reduce dealer inventories pressured both vehicle unit sales and underlying vehicle gross margin contributions, the analyst tells investors in a research note. These margin pressures are expected to continue into 2025, but the steps being taken around inventory levels and overhead expenses should provide a stronger growth baseline as rates continue to move lower and the macro environment improves, the firm says, adding that the decline in shares on Tuesday was likely due to the surprise announcement of another backstopped rights offering to strengthen the balance sheet where the previous thoughts were that operating cash flow alone would cover the upcoming convertible note maturity.