In a report released today, Michael Albanese from Benchmark Co. assigned a Buy rating on Lithia Motors, with 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’ strong earnings growth and strategic initiatives. The company reported an expected EPS increase of 23% to 27% year-over-year for the second quarter of 2025, surpassing previous estimates. This growth is notable following a 35% increase in the prior quarter, positioning Lithia Motors at the top of its peer group in terms of earnings growth for the first half of 2025.
Additionally, the company’s aggressive share repurchase strategy and anticipated acquisitions, amounting to over $1 billion in total acquired sales for the fiscal year, are expected to enhance its market position and scale efficiencies. The increased income from its captive finance division, DFC, further supports its long-term profitability targets. The stock’s valuation, trading at approximately 8.5 times forward EBITDA and 9.5 times forward diluted EPS, also presents an attractive investment opportunity.
In another report released yesterday, Citi also reiterated a Buy rating on the stock with a $378.00 price target.