Stifel Positive on AutoNation's (AN) Q3 Sales Results; Affirms at 'Hold'

Stifel affirms AutoNation (NYSE: AN) at Hold following September/Q3 sales numbers.

Analyst James Albertine noted that Q3 comparable-store sales results outpaced the firms expectations. Q3 comps were up 6.8 percent, versus the consensusat 6.2 percent, while September comps rose 15.8 percent, compared with an 11.1 percent gain expected.

Albertine commented:

We believe investors are less focused on new vehicle trends relative to other verticals, such as used retail and parts/service. To that end, it is our view that certain dealer valuation multiples have "broken away" from historical levels, resembling more "retail-like" multiples vs. industrial companies. We agree and support this breakaway. To that end, AN shares have underperformed the group as of late, despite quite strong (relative to peers) 3Q14-1Q15 results. We believe continued demonstrated strength (relative to peers) in used and P&S 2Q15 results could drive more investors back to AN as it would appear a steady, sustainable improvement in operations, which we believe warrants a re-valuation of shares vs. historical levels.

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

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