TrueCar downgraded to Neutral from Overweight at JPMorgan

JPMorgan analyst Rajat Gupta downgraded TrueCar (TRUE) to Neutral from Overweight without a price target following the Q4 report. The company reported a “disappointing” quarter and guidance with a “big cloud” on an ultimate recovery in growth and profitability at a time when the cycle tailwinds from rising inventory on new vehicles are slowing, the analyst tells investors in a research note. The firm sees TrueCar’s upcoming new products as compelling, but believes the “clock is clearly ticking” for the company to showcase the fruits of its initiatives and upcoming investments in sales and marketing. Given diminishing cycle support from inventories and lack of visibility on sustained inflection in revenue and profits, JPMorgan downgrades the shares.