Deutsche Bank Lowers Estimates, Price Target on AutoNation (AN)
More News related to AN
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- Notable Analyst Rating Changes 5/18: LEN, MGM, RTP, BA Upgraded; LLL, RTN, NOC, SPWRA, AN, JWN Downgraded
- David Moenning's Daily State of the Markets: 5/18
- Goldman Sachs Downgrades AutoNation (AN) to Sell
- AutoNation Supports General Motors Consolidation Plan
Deutsche Bank lowers their price target on AutoNation (NYSE: AN) from $17 to $15 and lowers estimates, citing US sales assumptions.
Deutsche Bank now sees 2008, 2009 and 2010 U.S. light vehicle sales of 14.5 MM, 15.0MM and 16.0MM respectively, down from their previous estimates of 14.9 MM, 16.0 MM and 17.0 MM.
Deutsche Bank now sees 2008 EPS for AN at $1.23, versus their prior estimate of $1.35. They sees 2009 EPS of $1.36, down from $1.54.
In its research note, DB analysts said, "At present, 7 of 8 leading indicators of U.S. auto demand that we monitor suggest that recessionary levels of auto demand will continue. In addition to the traditional leading indicators that we watch, we have previously noted that falling residual values make it difficult to execute transactions involving trade-ins. We continue to believe higher gasoline prices and changes in consumer tastes will continue to result in deteriorating industry mix (i.e. less pickup and SUV sales).
Automotive dealers will be impacted by this change, and we expect revenue and gross profit per vehicle to decline as a result. "
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AN
I BELIEVE THAT THIS STOCK WILL GO TO $8DOLLAR PER SHARE. I AGREE WITH ALL THE NEWS ABOUT AN.. We continue to believe higher gasoline prices and changes in consumer tastes will continue to result in deteriorating industry mix (i.e. less pickup and SUV sales). Automotive dealers will be impacted by this change, and we expect revenue and gross profit per vehicle to decline as a result. "
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STOCK PRICE
DEAN on Jun 30, 2008 04:14 PMAUTONATION CHAIRMAN HAVE DEFENDED THEIR STANCE OF NOT PAYING DIVIDENDS ON THEIR STOCKS, STATING THAT THE STOCK PRICE WILL PROVIDE SHARE HOLDER EQUITY IN ITS STOCK PRICE. NOW THAT THE STOCK HAS TANKED AND NO DIVIDENDS HAVE BEEN PAID TO SHARE HOLDERS WHERE IS THE EQUITY??