StoneX analyst Michael Albanese reiterated a Buy rating and $475.00 price target on Lithia Motors (NYSE: LAD).

The analyst commented, "We made only modest estimate revisions – some of which were offsetting. This included lowering new-vehicle volumes primarily to reflect softer EV penetration, largely offset by stronger hybrid demand. We also trimmed used GPUs, reduced our aftersales growth assumption to 2.5% (from 5.0%), and slightly lowered FinCo penetration expectations based on recent read-throughs from KMX. Net-net, the changes were incremental. LAD remains arguably the dealer with the strongest operating momentum in the group. Vehicle performance continues to stand out, the Pinewood rollout is emerging as a meaningful efficiency and productivity lever, and financing operations are scaling rapidly, with record profitability last quarter and earnings more than doubling y/y. At the same time, expense discipline remains underappreciated, highlighted by a 68.6% NA SG&A-to-gross-profit ratio last quarter, while management continues to balance growth investments with a shareholderfriendly capital allocation framework."

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Shares of Lithia Motors closed at $292.51 yesterday.