In a report released today, Chris Pierce from Needham reiterated a Buy rating on TrueCar, with a price target of $2.75.
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Chris Pierce has given his Buy rating due to a combination of factors including TrueCar’s current financial position and future profitability prospects. The company’s strong cash reserves and the low expectations from investors present an attractive risk/reward scenario. Furthermore, the anticipated return to profitability in the second half of 2025 provides additional confidence in the near-term projections.
Despite challenges in achieving consistent growth in units per franchise dealer, which is a key indicator for future dealer expansion and revenue growth, TrueCar has managed to stabilize its operations. The updated price target of $2.75 is based on a valuation of 10 times the fiscal year 2026 adjusted EBITDA estimate, aligning with industry peers. These factors collectively underpin the Buy rating for TrueCar’s stock.
According to TipRanks, Pierce is an analyst with an average return of -4.0% and a 40.00% success rate. Pierce covers the Consumer Cyclical sector, focusing on stocks such as Sonic Automotive, Carvana Co, and CarMax.