Analysts rate RumbleON Inc. (RMBL:NSD) with a Strong Buy, $44 Target

STA Research
by: STA Research

Analysts rate RumbleON Inc. with a consensus Strong Buy rating and a 12-month average target price of $44.00 per share.

Robert W Baird maintained the rating on RumbleON Inc. with an Outperform, and lowered the target price from $52 to $45.

D.A. Davidson maintained the Buy rating on the company’s stock, and lowered the target  from $48 to $41.

STA Research rates  RumbleON Inc. with a Buy rating, and sets the  target price at $39.

Based on the RumbleON Inc. stock forecasts from 4 analysts, the average analyst target price for RumbleON Inc. is USD 44.00 over the next 12 months. RumbleON Inc.’s average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of RumbleON Inc. is Bearish, which is based on 2 positive signals and 7 negative signals. At the last closing, RumbleON Inc.’s stock price was USD 35.56. RumbleON Inc.’s stock price has changed by +5.46% over the past week, +10.28% over the past month and -34.15% over the last year.

RumbleON, Inc. operates an e-commerce platform that aggregates and distributes pre-owned vehicles to and from consumers and dealers in North America. It operates in three segments: Powersports, Automotive, and Vehicle Logistics and Transportation. The company was formerly known as Smart Server, Inc. and changed its name to RumbleON, Inc. in February 2017. RumbleON, Inc. was incorporated in 2013 and is based in Irving, Texas.

What we like:

Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

What we don’t like:

Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

Poor risk adjusted returns

This company is delivering below median risk adjusted returns in its peers. Even if it is outperforming on returns , the returns are unpredictable. Proceed with caution.

High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Negative cashflow

The company had negative total cash flow in the most recent four quarters.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector.

 

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