In a report released today, Michael Albanese from Benchmark Co. maintained a Buy rating on Penske Automotive Group, with a price target of $190.00.
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Michael Albanese has given his Buy rating due to a combination of factors impacting Penske Automotive Group. Despite some anticipated challenges in the upcoming quarter, such as weak luxury demand in the UK and a cybersecurity issue affecting Jaguar Land Rover sales, Albanese sees potential for recovery and growth. The issues in the UK market, including the pressure from Chinese BEVs and EV mandates, are expected to be temporary setbacks.
Additionally, while the trucking business is facing a downturn due to a freight market recession, these conditions are seen as cyclical and not permanent. The company’s strategic positioning and ability to manage through these headwinds contribute to the Buy rating. Albanese believes that the current pressures on the company’s operations, including increased operating costs and SGA pressures, are already reflected in the stock price, presenting a buying opportunity for investors.
Albanese covers the Consumer Cyclical sector, focusing on stocks such as Penske Automotive Group, Lithia Motors, and Sonic Automotive. According to TipRanks, Albanese has an average return of -22.0% and a 26.61% success rate on recommended stocks.
In another report released yesterday, Morgan Stanley also maintained a Buy rating on the stock with a $190.00 price target.