RumbleOn (RMBL) is facing concerns about the state of the powersports payment buyer and a potentially slower industry recovery, B. Riley Securities said in a note Friday.
"Although the Fed has reduced interest rates... we would not be surprised if payment buyers remain on the sidelines, for the most part until rates move meaningfully lower from here and the outlook for the economy improves further," the firm said.
B. Riley said it is also moving to the sidelines amid "a lack of comfort in the powersports demand recovery timeline."
"We will look for improved powersports demand visibility and/or a more attractive entry point to, once again, become positive on the shares," B. Riley added.
B. Riley downgraded the company to neutral from buy and maintained its $7 price target.
RumbleOn shares were down 2.7% in recent Friday trading.
Price: 6.81, Change: -0.19, Percent Change: -2.71
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.