TrueCar slips as BTIG downgrades on vulnerable business model

TrueCar

27/10/2021 12:42

** Auotomtive marketplace TrueCar Inc's shares  TRUE.O  down
5.36% premarket at $4.06 - their lowest in three weeks - as BTIG
cuts to "neutral" from "buy"
    ** BTIG says co's business model is "most vulnerable to
industry challenges among auto marketplaces"
    ** Says vehicle sales are soft, prices are high, inventories
are low; adds that incentives are down 50% y/y, which is leading
to lower vehicle affordability
    ** "Even with sales running soft, production woes mean new
car inventories continue to fall"
    ** Says among the top four marketplaces that the brokerage
tracks, TRUE is the worst performer, with avg. listings down 24%
this quarter
    ** "We believe this is a particularly tough environment for
TRUE given that its model is the most tied to unit sales within
the auto marketplace group"; adds that co is a "victim of forces
far beyond its control"
    ** TRUE to report Q3 results on Nov. 3 after the bell
    ** Stock up 2.14% YTD vs peer CarGurus Inc's  CARG.O  9.01%
gain

 (Reporting by Anisha Sircar)
 ((Anisha.Sircar@thomsonreuters.com))