StoneX Reiterates Buy Rating on Lithia Motors (LAD) on Strong Operating Momentum

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."

For an analyst ratings summary and ratings history on Lithia Motors click here. For more ratings news on Lithia Motors click here.

Shares of Lithia Motors closed at $292.51 yesterday.

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