Lithia Motors (NYSE:LAD)‘s stock had its “buy” rating restated by investment analysts at Stifel Nicolaus in a note issued to investors on Wednesday, Analyst Ratings Network reports. They currently have a $83.00 price target on the stock, up from their previous price target of $65.00. Stifel Nicolaus’ price target suggests a potential upside of 16.33% from the stock’s previous close.
The analysts wrote, “Our view is (a) the pending vehicle replacement inflection, (b) small market recovery, and (c) further internal optimization drives more upside at LAD relative to peers through mid-decade. LAD currently trades at roughly 8.3x FY15E EV/EBITDA, though we see upside to current EPS expectations. Our $83 target implies 9.5x our FY15E EV/EBITDA, or roughly a 5% premium to peer AN (Hold, $53.49), a 10% discount to used retailer KMX (Buy, $51.79), a 5%-10% premium to auto parts retailers, and a 15%-20% premium to the public dealer peer average.”
Lithia Motors (NYSE:LAD) traded up 0.55% on Wednesday, hitting $71.74. The stock had a trading volume of 37,870 shares. Lithia Motors has a 52-week low of $31.60 and a 52-week high of $72.67. The stock’s 50-day moving average is $68.3 and its 200-day moving average is $56.16. The company has a market cap of $1.854 billion and a price-to-earnings ratio of 20.30.
Lithia Motors (NYSE:LAD) last posted its quarterly earnings results on Wednesday, July 24th. The company reported $1.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.90 by $0.15. The company had revenue of $1,000.00 million for the quarter, compared to the consensus estimate of $975.81 million. During the same quarter in the previous year, the company posted $0.76 earnings per share. The company’s revenue for the quarter was up 22.6% on a year-over-year basis. Analysts expect that Lithia Motors will post $3.89 EPS for the current fiscal year.
Other equities research analysts have also recently issued reports about the stock. Analysts at CL King initiated coverage on shares of Lithia Motors (NYSE:LAD) in a research note to investors on Thursday, September 5th. They set a “buy” rating on the stock. Separately, analysts at Merrill Lynch downgraded shares of Lithia Motors (NYSE:LAD) from a “buy” rating to a “neutral” rating in a research note to investors on Monday, August 12th. Finally, analysts at Bank of America Corp. downgraded shares of Lithia Motors (NYSE:LAD) from a “buy” rating to a “neutral” rating in a research note to investors on Monday, August 12th. They now have a $70.00 price target on the stock, up previously from $66.00.
Two investment analysts have rated the stock with a hold rating and seven have issued a buy rating to the company. The company currently has an average rating of “Buy” and an average price target of $69.61.
Lithia Motors, Inc, is an operator of automotive franchises and a retailer of new and used vehicles and services.
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