– RumbleOn is the largest power sports dealership group in the US.
– Currently, RMBL is misunderstood and being viewed as yet another COVID beneficiary.
– However, RMBL is sufficiently resilient during near-term macro bumpiness and has a compelling LT strategy for value creation.
– RMBL’s organic growth, with used volume growth being the key component, will allow the company to outperform peers this year.
– RMBL has multiple levels to create value including accretive M&A, opening their fulfillment/distribution centers to the public, and focusing on effective servicing at dealerships.
– Despite high leverage, the risk of breaching debt covenants is low.
– 2024 EBITDA expected at around $130m.
– Using a 6x EBITDA multiple results in a $25/share price target.
Exp. gain: 200%+
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