Benchmark Co. analyst Michael Albanese maintained a Buy rating on Lithia Motors (LAD – Research Report) yesterday and set a price target of $400.00.
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Michael Albanese has given his Buy rating due to a combination of factors including Lithia Motors’ impressive financial performance and strategic growth initiatives. The company’s fourth-quarter and full-year 2024 results exceeded expectations, with significant sales growth and improved earnings. Notably, Lithia Motors’ Driveway Finance Corp. achieved its first profitable year, contributing significantly to the company’s overall profitability.
Additionally, the acquisition of Stohlman Subaru and a robust share repurchase program reflect the company’s commitment to expansion and shareholder value. Despite some challenges in organic sales growth, the company’s strong aftersales business and effective inventory management have helped maintain a healthy gross margin. Looking ahead, Lithia Motors has reaffirmed its ambitious sales and earnings targets, further supporting the positive outlook.
In another report released yesterday, Jefferies also reiterated a Buy rating on the stock with a $400.00 price target.
LAD’s price has also changed moderately for the past six months – from $276.440 to $385.710, which is a 39.53% increase.