JMP Encouraged By Improvements For TrueCar, But Says Turnaround Still Early

JMP Securities Ronald Josey maintained his Market Perform rating on TrueCar Inc TRUE.

Josey spent time with CEO Chip Perry and CFO Mike Guthrie last week. His confidence was bolstered "with improved dealer relationships and progress around its updated tech platform."

His main takeaways were:

• The company is increasingly focused on conversion rates.
• The TrueCar's Dealer Pledge is resonating with dealers and improving overall industry relationships.
• The goal of its new tech infrastructure is to allow for faster A/B testing and improved utilization of the company's car buyer data.

  The analyst viewed the progress in these three areas as positive, but believes "it is likely to take some time before results improve significantly as close rates remain at all-time lows, the company is rebuilding its dealer partner network, and its new technology platform is likely multiple quarters away from being fully launched."