Analyst Michael Albanese from Benchmark Co. maintained a Buy rating on Lithia Motors and keeping the price target at $400.00.
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Michael Albanese has given his Buy rating due to a combination of factors including Lithia Motors’ strong third-quarter performance, where they reported record sales and earnings that surpassed expectations. The company achieved a notable increase in same-store sales and aftersales gross profit, indicating robust operational momentum. Despite these positive results, the stock price remained flat, presenting a potential buying opportunity given its undervaluation relative to its performance.
Additionally, Lithia Motors has reaffirmed its fiscal year outlook and demonstrated effective capital allocation strategies, including significant share repurchases and strategic acquisitions. The company is also making strides in building a leading omnichannel used platform, which positions it well to capture increasing demand in the used car market. The management’s proactive approach in managing inventory and leveraging ongoing M&A and buybacks further supports the company’s growth trajectory, making it an attractive investment option.
According to TipRanks, Albanese is an analyst with an average return of -22.3% and a 25.23% success rate. Albanese covers the Consumer Cyclical sector, focusing on stocks such as Penske Automotive Group, Lithia Motors, and Sonic Automotive.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $346.00 price target.