Stifel Maintains AutoNation (AN) at Hold; Monthly Sales Ebbing Factor in Segment

Stifel retains its Hold rating on AutoNation, Inc. (NYSE: AN) following February 2014 retial sales reported earlier. The company reported a 3.9 percent increase in total retail sales, led by a 2.6 pecent increase in domestic sales, 3.4 percent increase in imports, and 7.2 percent gain for the luxury segment.

Analyst James Albertine commented, We believe as weather remained a headwind in February. AutoNation's outperformance is likely driven by its concentration in the southern and southeastern U.S. However, we continue to believe monthly new vehicle sales will be less of a factor for owning/trading auto dealer stocks in the future as most investors have begun dissecting dealer performance by business line (e.g. used, P&S). Historically, dealers have traded more like an ETF, in our view, but we see investor focus shifting to used (very difficult business to consistently outperform) and M&A (a key driver of long-term EBIT margin expansion). As such our recommendations will be rooted in used/M&A outlook by dealer in 2014.

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

AutoNation Inc. closed at $52.65 yesterday, with a 52 week range of $40.30 - $54.49.

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