GPI's $880 mln Prime Automotive Group purchase a 'positive move' - JPM

Gerard Perrier Industrie SA

14/09/2021 14:35

** J.P. Morgan raises GPI's PT by $10 to $210, saying co's
purchase of Prime Automotive Group is a "positive move"
    ** The deal, which adds ~$1.8 bln in annualized revenues,
signals a shift in co’s capital allocation priorities toward M&A
vs buyback - JPM  urn:newsml:reuters.com:*:nPn1CtNrfa
    ** Brokerage says Prime's physical footprint fits well
within co's existing network, with opportunity to drive
incremental growth 
    ** GPI's new vehicle inventory remains tight amid supply
disruption driven by ongoing pandemic and chip supply shortage,
JPM adds 
    ** Six of 8 brokerages rate the stock "buy" or higher, 2
"hold"; their median PT is $206
    ** Shares up ~25.05% YTD

 (Reporting by Kannaki Deka in Bengaluru)
 ((Kannaki.Deka@thomsonreuters.com))