Goldman Sachs Upgrades AutoNation Inc. (AN) to Buy

Goldman Sachs upgraded AutoNation Inc. (NYSE: AN) from Neutral to Buy with a price target of $65.00 (from $56.00) calling it the best idea to invest in M&A and SAAR upside.

"We upgrade shares of AN to Buy from Neutral on the basis of the company’s strong growth outlook, better core efficiency metrics, and best in class industry margins," analyst Patrick Archambault said. " AN is well positioned to benefit from our upwardly revised SAAR forecast as it is 100% levered to the US market and we are also encouraged by the recent pickup in dealer acquisition activity, which added an estimated 4.7% to revenue growth last year."

The firm raised FY 2014 EPS from $3.41 to $3.45, FY 2015 EPS from $3.88 to $3.99 and FY 2016 EPS from $4.32 to $4.51.

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 $56.51 yesterday.

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