TRUE - TrueCar stock takes off after JP Morgan double-upgrade

TrueCar ( NASDAQ: TRUE ) shares drove substantially higher after JP Morgan analyst Rajat Gupta moved from a bearish to bullish outlook on Monday.

In a note to clients reassessing ratings across the online auto space after earnings, Gupta took his rating on TrueCar ( TRUE ) to “Overweight” from a previous “Underweight” as profits are anticipated to recover into 2023. A recovery in dealer inventory and normalization for the auto dealer industry overall are expected to aid TrueCar ( TRUE ) which, after falling over 55% into Friday’s close, presents an appealing risk/reward proposition.

Gupta did not provide a price target for the stock. Shares of TrueCar ( TRUE ) rocketed 19.14% near the mid-point of Monday’s trading.

Read more on why SeekingAlpha contributor Matthew Craw sees too much risk for the company .

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