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RBC Capital Maintains Outperform On TrueCar Following In-Line 4Q14 Results


RBC Capital analyst Mark Mahaney weighed in with a favorable report on TrueCar Inc (NASDAQ:TRUE), after the company reported fourth-quarter results, posting revenue of $55.5 million, which came in-line with RBC estimate. However, EBITDA of $4.3 million was above RBC’s estimate of $2.8 million on Sales & Marketing and Tech leverage.

The analyst reiterated an Outperform rating on the stock with a price target of $23, which represents a potential upside of 15% from where the stock is currently trading.

Mahaney noted, “We are incrementally more positive post Q4 results. We continue to believe TRUE has emerged as a leading Online car platform with a large addressable market, with a differentiated value proposition to both car dealers and consumers, the potential to grow numerous new revenue streams, and a business model with significant scale potential.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Mark Mahaney has a total average return of 23.3% and a 67.9% success rate. Mahaney has a 5.6% average return when recommending TRUE, and is ranked #16 out of 3479 analysts.