TrueCar’s Resilient Outlook: Buy Rating Affirmed Amid Market Challenges and Strategic Caution

Analyst Chris Pierce of Needham reiterated a Buy rating on TrueCar (TRUE – Research Report), reducing the price target to $2.75.

Chris Pierce has given his Buy rating due to a combination of factors that suggest a favorable long-term outlook for TrueCar. Despite the current challenges in the US auto market, TrueCar’s substantial cash reserves provide a buffer, and the initial success of TrueCar+ indicates potential for improved revenue generation from lower funnel leads and completed vehicle transactions.
However, the company is exercising caution by scaling back growth plans in response to market uncertainties, which has led to a revised price target of $2.75. This target is based on a multiple of 10 times the projected adjusted EBITDA for fiscal year 2026, which is conservative compared to other companies in the lead generation sector.