RumbleON downgraded at DA Davidson as CEO replaced in ‘surprising’ move

DA Davidson analyst Michael Baker downgraded RumbleON (RMBL) to Neutral from Buy with a price target of $5, down from $7.50. RumbleON announced that Michael Quartieri will replace Mike Kennedy as CEO, which DA Davidson finds “surprising” as Kennedy just became CEO in October 2023 following the ouster of Marshall Chesrown in June 2023, the analyst tells investors in a research note. The firm notes that Quartieri will be the fourth CEO in the past year and a half, and while the firm gives the company credit for several recent balance sheet improvement wins, the CEO change suggests that sales and profit trends remain weak. Additionally, DA Davidson believes the power sports business likely will remain under pressure for longer than expected, limiting demand for what is a high ticket purchase.