KeyBanc Starts Asbury Automotive Group (ABG) at Hold; Valuation Appears In Line with Historical Multiples
Tweet
Share
E-mailGet Alerts ABG Hot Sheet
Price: $221.54 -0.29%
Rating Summary:
7 Buy, 6 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
7 Buy, 6 Hold, 1 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Join SI Premium – FREE
KeyBanc initiates coverage on Asbury Automotive Group (NYSE: ABG) with a Hold.
KeyBanc analyst said, "We are initiating coverage of ABG with a HOLD rating as: 1) a solid management team is currently in the middle innings of an integration of independently operated franchise groups; however, it is lagging behind its peers; 2) catalysts exist for near and longer-term increases in the U.S. light vehicle SAAR, and in particular the near-term inventory recovery from the Japanese automakers (60% of sales) could serve as a catalyst for the stock, though Honda, which is its primary exposure, seems furthest from full recovery; 3) given the Company's size and share count, acquisitions could materially impact results; however, integration appears to be the top priority for management and acquisitions are a near-term distraction; 4) while there is likely some near-term gross profit margin headwinds across new, used and service, scale and business model improvements likely drive incremental gross profit, leverage of SG&A and earnings improvement...We are introducing EPS estimates of $1.74 (First Call consensus $1.72) for 2011 and $2.02 (First Call consensus $2.03) for 2012."
For an analyst ratings summary and ratings history on Asbury Automotive Group click here. For more ratings news on Asbury Automotive Group click here.
Shares of Asbury Automotive Group closed at $20.57 yesterday.
KeyBanc analyst said, "We are initiating coverage of ABG with a HOLD rating as: 1) a solid management team is currently in the middle innings of an integration of independently operated franchise groups; however, it is lagging behind its peers; 2) catalysts exist for near and longer-term increases in the U.S. light vehicle SAAR, and in particular the near-term inventory recovery from the Japanese automakers (60% of sales) could serve as a catalyst for the stock, though Honda, which is its primary exposure, seems furthest from full recovery; 3) given the Company's size and share count, acquisitions could materially impact results; however, integration appears to be the top priority for management and acquisitions are a near-term distraction; 4) while there is likely some near-term gross profit margin headwinds across new, used and service, scale and business model improvements likely drive incremental gross profit, leverage of SG&A and earnings improvement...We are introducing EPS estimates of $1.74 (First Call consensus $1.72) for 2011 and $2.02 (First Call consensus $2.03) for 2012."
For an analyst ratings summary and ratings history on Asbury Automotive Group click here. For more ratings news on Asbury Automotive Group click here.
Shares of Asbury Automotive Group closed at $20.57 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Goldman Sachs on Meta Platforms Inc. (META): 'We expect investors to have an initial negative reaction'
- Plexus Corp (PLXS) Tops Q2 EPS by 7c
- O'Reilly Automotive (ORLY) Misses Q1 EPS by 7c, Offers Guidance
Create E-mail Alert Related Categories
New CoverageRelated Entities
KeyBanc, EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
