TrueCar downgraded to Neutral from Buy at BTIG

BTIG downgraded TrueCar to Neutral from Buy without a price target. The firm now has a “growing set of concerns, some of which are macro-related while others are company-specific.” The most near term of its concerns is the United Auto Workers strike. If the strike becomes prolonged, TrueCar will be the most impacted of the auto marketplaces, the analyst tells investors in a research note. BTIG says a prolonged strike could have a similar effect as the chip shortage, which caused inventories on dealer lots “to shrivel.” A longer-term concern is the level of interest rates, which look like they will be higher for longer, adds the firm. It believes higher interest rates not only weigh on new and used car sales, but can also “pinch dealers” through floor plan financing costs, possibly prompting cutbacks in dealer advertising and lea generation spend.