Texas Capital starts RumbleON with a Buy ahead of potential catalyst

As previously reported, Texas Capital analyst Eric Wold initiated coverage of RumbleON (RMBL) with a Buy rating and $3.50 price target as the firm launched coverage of the powersports industry and five stocks within the segment. The firm believes that some areas of the powersports segment could prove more resilient, such as motorcycles and utility vehicles. The meaningful reduction in inventories and expected pivot of the revenue mix back to pre-owned vehicles could boost profitability, and the debt refinancing planned for later this year could “represent a positive catalyst,” the analyst tells investors.