TrueCar Shares Accelerate On Strong Q4

Shares of TrueCar Inc (NASDAQ: TRUE) hit a new 52-week high of $15.26 on Friday after the company impressed investors with a better than expected fourth-quarter report and outlook.

Blake Harper of Loop Capital Markets maintains a Buy rating and $18 price target on TrueCar's stock as many of TrueCar's reported metrics exceeded the analyst's expectations.

For example, TrueCar's recorded sold units of 219,000 was ahead of the analyst's expectations of 211,000 and the company added 392 franchise dealers, which also exceeded his estimate of 336 dealers.

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TrueCar also detailed a plan to become a more comprehensive automobile marketplace destination. Harper argued that this move "makes sense," as it will help the company boost its new car market share higher from its current 4.2 percent. Moreover, the plan can be done in a cost-effective manner and led by an experienced CEO with the necessary institutional knowledge to get it done.

Harper also pointed out that TrueCar plans on spending more on marketing initiatives and platform upgrades but at the same time, it is able to increase its adjusted EBITDA margins by 1 to 2 percentage points based on the company's 2017 guidance.