Group 1 Automotive falls after Guggenheim downgrades to 'neutral'

Group 1 Automotive

14/05/2025 15:10

Updates

 ** Automotive retailer co Group 1 Automotive GPI.N falls marginally 0.4% to $447 in early-trade

** Guggenheim downgrades co to "neutral" from "buy"; price target unchanged at $426

** Says rating change due to mix of premium valuation, potential tariff risk on the business and expected slow sales

** Adds price hike due to tariff will start impacting co's results sooner than the peer

** "Softening U.S. new seasonally adjusted annualised rate (SAAR) environment and premium valuation pose risks in the near-term"- Guggenheim

** Co's adj. EPS beat analysts' estimates for two consecutive quarters

** Seven of 9 brokerages rate the stock "buy" or higher, 2 "hold"; their median PT is $480 - data compiled by LSEG

** Including session moves shares are up 6.1% YTD

(Reporting by Apratim Sarkar)

((Apratim.Sarkar@thomsonreuters.com))