Needham reiterates Buy rating on TrueCar stock amid path to profitability

Published 07/08/2025, 16:48
Needham reiterates Buy rating on TrueCar stock amid path to profitability

Investing.com - Needham maintained its Buy rating and $2.75 price target on TrueCar (NASDAQ:TRUE) following the company’s second-quarter results. According to InvestingPro data, TrueCar currently trades at $2.10, with analyst targets ranging from $1.50 to $3.25.

The research firm cited a favorable risk-reward profile for TrueCar, pointing to the company’s strong cash balance and low investor expectations. InvestingPro analysis confirms this strong financial position, showing the company holds more cash than debt and maintains a healthy current ratio of 4.7x. While currently unprofitable, Needham expressed increased confidence in its near-term estimates as TrueCar is expected to return to profitability in the second half of 2025.

The firm noted that broader revenue momentum remains challenging due to tariff-related uncertainties affecting original equipment manufacturers (OEMs) and dealers, particularly regarding new vehicle average selling prices and corresponding demand levels.

TrueCar has managed to stabilize but not consistently grow units per franchise dealer, which Needham identifies as a leading indicator for increased dealer count, unit growth, and subsequent revenue improvement.

Needham’s $2.75 price target represents 10 times its fiscal year 2026 adjusted EBITDA estimate, which the firm states is in line with other lead generation peers within its coverage.

In other recent news, Apple Inc (NASDAQ:AAPL). announced a leadership transition with Jeff Williams stepping down from his role as Chief Operating Officer later this month. Sabih Khan, currently serving as Senior Vice President of Operations, will take over the COO position as part of a planned succession. Williams will continue to report to CEO Tim Cook and will oversee Apple’s design team and Apple Watch, along with the company’s Health initiatives. Additionally, Apple’s design team will transition to report directly to Cook after Williams retires later in the year. These developments reflect Apple’s ongoing strategic adjustments in its leadership structure.

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