Benchmark Co. analyst Michael Albanese has maintained their neutral stance on GPI stock, giving a Hold rating on September 10.
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Michael Albanese has given his Hold rating due to a combination of factors influencing Group 1 Automotive’s current market position. Despite the company’s strong fundamentals, driven by resilient vehicle demand and robust aftersales performance in the US, there are concerns about the softness in the UK luxury market and pressure on gross profit per unit from electric vehicles. Additionally, the company faces a significant integration challenge ahead, and its shares are trading at a premium compared to its peers.
Moreover, while Group 1 Automotive is making progress in its UK restructuring and has a strategic advantage with its real estate ownership and shared services model, these factors are balanced by potential risks. The restructuring process is expected to take around 12 months, and the recent cyber-attack on Jaguar Land Rover could have a modest impact on the company’s UK operations. These elements combined lead to a cautious outlook, justifying the Hold rating.
According to TipRanks, Albanese is an analyst with an average return of -18.6% and a 36.19% success rate. Albanese covers the Consumer Cyclical sector, focusing on stocks such as Group 1 Automotive, Lithia Motors, and Sonic Automotive.