Wells Fargo cuts PT for auto retailers on likely profit drop for new vehicles

Lithia Motors

09/10/2023 12:07

** Wells Fargo cuts price target for two automotive
retailers AutoNation  AN.N  and Lithia Motors  LAD.N , maintains
"equal-weight" rating for both
    ** Analysts at Wells Fargo say while industry pricing
continues to hold in Q3, they expect modest sequential declines
in gross profits per unit for new vehicles
    ** Brokerage estimates new GPU declines will likely impede
EPS growth     
    ** Wells Fargo trims AutoNation's PT to 150 from 171,
representing a ~10% upside to the stock's last close
    ** Lithia Motors' stock PT cut to $275 from $319 represent a
~5% upside to the stock's last close
    ** As of Friday's close, AutoNation stock up 27.5% while
Lithia up 27.6% YTD

    

 (Reporting by Mehr Bedi in Bengaluru)
 ((Mehr.Bedi@thomsonreuters.com;))