Stephens analyst Kyle Evans lowered the firm's price target on TrueCar (TRUE) shares to $4 from $8 after the company reported it is losing partner USAA, which accounts for almost 30% of unit volume. While he expects the stock to trade down towards $2, or near its net cash position, following the news, Evans also believes TrueCar should sell the business to one of the used car platforms, such as Autotrader, Cars.com (CARS) or CarGurus (CARG), and thinks "something in the $4-$5 per share range is possible" in such a hypothetical deal. He keeps an Overweight rating on TrueCar shares, which are down $1.01, or 25.8%, to $2.90 in pre-market trading.

Analyst White, along with Jeff Rubin, COO of Competition Auto Group, discusses the sector, specifically the use of digital advertising, third party sites CARS and CARG and inventory volatility on an Analyst/Industry conference call to be held on April 30 at 11 am.