Benchmark Co. analyst Daniel Kurnos maintained a Buy rating on TrueCar (NASDAQ: TRUE) today and set a price target of $18. The company’s shares closed yesterday at $11.38.
Kurnos observed:
“We note that the Company specifically called out a moderation/holding in attribution spend in the TrueCar channel, keeping units flat, with intent to accelerate investment likely once the new platform is up and running. Dealer adds are also expected to be ~1,000 by year-end, which is encouraging given the improved pricing structure and reduced net churn. Our FY18 revenue is coming in slightly to be in line with consensus which is ~$1 million below the mid-point of guidance on both revenue and EBITDA, somewhat de-risking the back half of the year from a performance perspective and leaving some upside potential in the OEM channel. Our 2019 forecast remains at 14% y/y growth, although we are incrementally optimistic management will meet its 20% growth target.”
According to TipRanks.com, Kurnos is a 5-star analyst with an average return of 12.8% and a 57.1% success rate. Kurnos covers the Services sector, focusing on stocks such as Chicken Soup For The Soul Entertainment Inc, Booking Holdings Inc, and Sinclair Broadcast.
The word on The Street in general, suggests a Hold analyst consensus rating for TrueCar with a $13.50 average 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 $8.06 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.
