Shares of TrueCar (NASDAQ:TRUE) are trading higher today, which can be attributed to an analyst upgrade. Indeed, Chris Pierce of Needham Securities changed his rating on the stock from Hold to Buy while assigning a price target of $3.50 per share.
Pierce believes that the normalization of auto sales should act as a catalyst to push the stock price higher. He also pointed to the company’s cash balance and potential interest from industry partners as factors that give him comfort.
A look at the past five trading days shows the impact that today’s news had on TRUE stock. Shares were trending lower until Pierce’s comments sent them spiking. As a result, the stock recovered most of its recent losses and is down 2.84% over this timeframe.