Lake Street downgrades TrueCar to Hold on tariff uncertainty

Lake Street analyst Ryan Meyers downgraded TrueCar (TRUE) to Hold from Buy with a price target of $1.50, down from $5, following the Q1 report. While the company reported a solid performance in Q1, the near-term outlook is “significantly influenced” by the uncertainty stemming from newly implemented automotive sector tariffs, the analyst tells investors in a research note. The firm says the tariffs could potentially add substantial costs per new vehicle sold. While TrueCar is yet to see a material impact on the business, it withdrew its outlook for accelerated growth and margin expansion in 2025, Lake Street points out. It believes the tariff uncertainly “will put a ceiling on the stock” until better visibility emerges regarding the auto market and the company’s ability to reaccelerate its growth investments.