US auto dealers' stocks climb as Stephens initiates coverage

Lithia Motors

12/09/2024 19:31

** Shares of Lithia Motors  LAD.N  rise 3.6% to $271.09,
AutoNation  AN.N  rise 1.8% to $161.57, Group 1 Automotive
 GPI.N  rise ~2% to $346.80, Penske Automotive Group  PAG.N 
rise 1.1% to $150.09 and Sonic Automotive  SAH.N  rise 2.5% to
$54.90
    ** Stephens initiates coverage for the "Public 6" franchised
U.S. auto dealerships 
 Company        Brokerage  Brokerage  LSEG data
                rating     PT         median PT
 Asbury         equal-wei  $216       $240
 Automotive     ght                   
 Group  ABG.N                         
 AutoNation     over-weig  $210       $205
                ht                    
 Group 1        equal-wei  $394       $397
 Automotive     ght                   
 Lithia Motors  over-weig  $360       $345
                ht                    
 Penske         equal-wei  $161       $170.30
 Automotive     ght                   
 Group                                
 Sonic          equal-wei  $64        $63
 Automotive     ght                   
    ** Brokerage believes the six public auto dealers generate 
diverse cash flow streams owing to essential transportation
needs
    ** "The current stock setup (for the companies) is tricky
due to an on-going earnings normalization from a COVID era boom"
- brokerage
    ** Sees companies as "shareholder-friendly" businesses in
long term
    ** Up to last close, the S&P 500 automotive retail sub-index
 .SPLRCAUTR  was up 16.5% YTD

 (Reporting by Aatreyee Dasgupta)
 ((Aatreyee.Dasgupta@thomsonreuters.com))