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TrueCar on track for 16-month low after J.P. Morgan downgrade

Published 03/22/2018, 09:13 AM
© Reuters.  TrueCar on track for 16-month low after J.P. Morgan downgrade
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  • TrueCar (NASDAQ:TRUE) -4% premarket on track to open at a 16-month low after J.P. Morgan downgrades shares to Underweight from Neutral with a $10 price target, slashed from $13, citing weak auto industry trends and execution risk.
  • JPM's Doug Anmuth says he is concerned that industry light vehicle sales have declined 1% YTD and that dealers are turning cautious, as evidenced by dealership operator Group 1 Automotive's (NYSE:GPI) warning earlier this week about weak market conditions and pressure on used car margins.
  • Anmuth says TRUE's investment in the Capsella project is a positive but the investments will take time to "move the needle" on earnings, and the firm is "cautious around emerging headwinds in the auto industry that could weigh on near-term performance."
  • Now read: TrueCar, Inc 2017 Q4 - Results - Earnings Call Slides


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