UBS Cuts Price Target and Estimates on AutoNation (AN) Following 3Q

November 1, 2016 8:51 AM EDT
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Price: $51.69 +0.14%

Rating Summary:
    7 Buy, 11 Hold, 1 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 30 | Down: 30 | New: 23
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UBS maintained a Sell rating on AutoNation Inc. (NYSE: AN), and cut the price target to $43.00 (from $47.00), following the company's 3Q earnings report. UBS lowered 2016 EPS estimates from $4.15 to 4.05.

Analyst Colin Langan commented, "AN shares traded down 4% on Friday following a sales and margin miss. New vehicle ss sales fell 6.2% vs. consensus of -2.0%. AN also reported a 220bps y/y increase in SG&A to 70.7% of gross (vs. cons. of 67.6%), driven by aggressive OEM incentives. SG&A is expected to increase 100bps seq. in Q4 and remain elevated through 2017 as AN invests in the roll-out of AN USA and the expansion of its collision and auction stores. We maintain our Sell rating given the continued new & used margin pressure."

For an analyst ratings summary and ratings history on AutoNation Inc. click here. For more ratings news on AutoNation Inc. click here.

Shares of AutoNation Inc. closed at $43.87 yesterday.

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