TrueCar stock rating downgraded to Neutral by BTIG after acquisition news

Published 20/10/2025, 09:40
TrueCar stock rating downgraded to Neutral by BTIG after acquisition news

Investing.com - BTIG downgraded TrueCar (NASDAQ:TRUE) from Buy to Neutral following the company’s recently announced acquisition agreement with Fair Holdings. The automotive pricing platform, currently valued at $216.68 million, has shown remarkable volatility in recent trading sessions.

Fair Holdings, a private company, has agreed to acquire TrueCar for $2.55 per share, prompting BTIG to reassess its rating on the stock. The company’s shares are currently trading at $2.45, with InvestingPro data showing an impressive 71.33% return over the past week.

TrueCar shares are currently trading approximately 4% below the acquisition price, which BTIG analyst Marvin Fong considers an appropriate discount given the "non-zero risk" that the deal might not be completed.

The stock has already gained approximately 65% since before the acquisition announcement was made public.

BTIG suggests that the substantial gain investors have already achieved is "worth locking in" rather than maintaining exposure to the small remaining upside potential.

In other recent news, TrueCar, Inc. has reported its second-quarter 2025 financial results, which showed a mixed performance. The company missed earnings per share (EPS) expectations with an EPS of -$0.09 compared to the forecasted -$0.06. However, TrueCar surpassed revenue forecasts, achieving $47 million against the anticipated $45.21 million. Additionally, TrueCar has entered into a definitive agreement to be acquired by Fair Holdings, an entity led by its founder Scott Painter, in an all-cash transaction valued at approximately $227 million. This acquisition will result in TrueCar stockholders receiving $2.55 per share in cash, and the company will be taken private. In response to this acquisition news, JPMorgan upgraded TrueCar’s stock from Underweight to Neutral. Meanwhile, Needham downgraded TrueCar from Buy to Hold, citing concerns over the company’s growth trajectory. Furthermore, TrueCar announced the termination of its chief revenue officer, Jay Ku, without cause, effective September 1.

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