JMP Securities reiterating their Strong Buy rating on DealerTrack (NASDAQ:TRAK). Shares of DealerTrack continue to retreat over general macro concerns of the retail automotive sector and more specific concerns regarding the funding outlook for subprime lenders. Yet, AmeriCredit just informed JMP that it is actually seeing increasing credit application flows in reaction to tighter lending standards, a positive trend for DealerTrack in the face of weakening retail demand. Firm's 12- to 18-month target remains $58 based on 35x implied 2009 EPS, or a 1.3x PEG ratio assuming 25-30% growth.
Notablecalls: TRAK has gotten killed lately and I think JMP's comments are actionable for a bounce here.
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