KeyBanc Downgrades Group 1 Automotive Inc. (GPI) to Hold; Three Key Issues Plus Valuation

KeyBanc downgraded Group 1 Automotive Inc. (NYSE: GPI) from Buy to Hold.

Analyst, Brett D. Hoselton, said, "Downgrading as we believe the shares are fairly valued at this time for the following reasons: 1) the outlook for the robust growth we anticipated from an aggressive pace of well-executed, disciplined acquisitions has softened near term, and we believe the increased uncertainty of the macro outlook is the likely driver, which could persist post Presidential elections and into 2013; 2) earnings upside is likely limited as GPI's potential to outperform the U.S. Light Vehicle SAAR driven by Toyota's (NYSE: TM) recovery and BMW 3-series launch coming online appears largely reflected in the Street's estimates at this time; and 3) at current levels, valuation appears in line with the group's average and relatively in line with GPI's historical levels, while the potential for the multiple expansion we anticipated has weakened near term."

For an analyst ratings summary and ratings history on Group 1 Automotive Inc. click here. For more ratings news on Group 1 Automotive Inc. click here.

Shares of Group 1 Automotive Inc. closed at $54.31 yesterday.

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