TrueCar revs up as Needham raises to 'buy'

TrueCar

14/03/2023 13:04

** Shares of automotive marketplace TrueCar Inc  TRUE.O  up
9.6% at $2.19 in premarket trading
    ** Needham upgrades TRUE rating to "buy" from "hold", with
$3.50 PT
    ** Says "TRUE's combination of leverage to new vehicle sales
as the industry slowly returns to normal, and changes to TRUE's
business model help us get comfortable playing offense"
    ** Adds TRUE's cash balance and further potential interest
from strategic partners adds comfort on the defensive side
    ** Expects a pick-up in TRUE franchise (new) dealer count on
early signs of new vehicle sales and inventories improving
    ** Now 3 brokerages rate TRUE 'buy' or 'strong buy', while 4
rate it at "hold"; median PT is $3.75 - Refinitiv data
    ** TRUE is down ~20% this year through Mon; it has fallen in
each of the past six years, incl a ~26% slide last year

 (Reporting by Amna Karimi in Bengaluru)
 ((Amna.Karimi@thomsonreuters.com; +91 8083261226;))