UPDATE: Goldman Sachs Downgrades Group 1 Automotive Inc. (GPI) to Sell
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(Updated - November 22, 2016 9:04 AM EST)
Goldman Sachs downgraded Group 1 Automotive Inc. (NYSE: GPI) from Neutral to Sell with a price target of $59, implying downside of 16%. Analyst David Tamberrino said its share price is detached from fundamentals.
"Following the US election results, GPI shares have increased 24% vs. the S&P500 +3% and our overall coverage +6%, outperformance that we attribute to potential benefits of a possible lower corporate tax rate. However, our fundamental view of the company remains unchanged and our 6-month price target now shows 16% downside. When coupled with our below-consensus 2016 and 2017 EPS estimates (1% and 1.6% below the Street, respectively), continued headwinds from Texas/Oklahoma exposure in the US as well as post-Brexit UK exposure, we now expect shares to underperform peers," said Tamberrino.
Shares of Group 1 Automotive Inc. closed at $70.51 yesterday.
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Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Downgrades
Related EntitiesGoldman Sachs, Standard & Poor's
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