SunTrust Robinson Sticks to Their Hold Rating for TrueCar (TRUE)

SunTrust Robinson analyst Naved Khan maintained a Hold rating on TrueCar (TRUE) today and set a price target of $8. The company’s shares opened today at $6.43, close to its 52-week low of $5.61.

Khan said:

“We’re maintaining a Hold rating as we await signs of traction on the growth initiatives. Valuation/risks.TRUE trades at ~1x on our CY19E. Upside risks: Faster than expected top-line growth, better than expected margins. Downside risks: Loss of traffic from affinity group marketing partners, macroeconomic cycle, competition, and litigation.”

According to TipRanks.com, Khan is a 5-star analyst with an average return of 20.9% and a 68.4% success rate. Khan covers the Technology sector, focusing on stocks such as Endurance International, Wix.com Ltd, and trivago NV.

Currently, the analyst consensus on TrueCar is a Hold with an average price target of $7.75, which is a 20.5% upside from current levels. In a report issued on May 10, B.Riley FBR also initiated coverage with a Hold rating on the stock with a $7.50 price target.

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Based on TrueCar’s latest earnings release for the quarter ending March 31, the company reported a quarterly GAAP net loss of $14.37 million. In comparison, last year the company had a GAAP net loss of $9.06 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.