Bret Jordan, an analyst from Jefferies, maintained the Buy rating on Lithia Motors (LAD – Research Report). The associated price target remains the same with $400.00.
Bret Jordan has given his Buy rating due to a combination of factors influencing Lithia Motors’ performance and outlook. The company has shown resilience in its financial metrics, with new vehicle gross profit units (GPUs) exceeding expectations despite a challenging environment. The management’s reaffirmation of the 2025 outlook, particularly in terms of new vehicle sales and pricing visibility, indicates confidence in the company’s future growth potential.
Additionally, Lithia Motors’ strategic diversification into the UK market provides a buffer against potential tariff impacts in the US, enhancing its competitive position. The company’s Parts and Service (P&S) segment continues to demonstrate strong performance, which is expected to offset any tariff-induced challenges. Despite macroeconomic uncertainties, the management’s optimistic outlook and strategic initiatives support the Buy rating, reflecting a positive long-term view of the company’s prospects.
In another report released today, Benchmark Co. also maintained 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 $335.310 to $278.290, which is a -17.01% drop .