Benchmark Co. analyst Michael Albanese has maintained their bullish stance on PAG stock, giving a Buy rating on February 13.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Michael Albanese has given his Buy rating due to a combination of factors including Penske Automotive Group’s strong financial performance and strategic positioning. The company reported better-than-expected results for both the fourth quarter and the full fiscal year 2024, with significant increases in sales, EBITDA, and earnings per share, surpassing consensus estimates. This robust performance has prompted adjustments in future sales and earnings forecasts, highlighting a positive outlook for fiscal years 2025 and 2026.
Furthermore, Penske’s diversified business model, featuring a premium mix of auto brands, commercial trucks, and a strategic equity stake, contributes to a sustainable free cash flow and a strong capital strategy. The firm’s low leverage and significant liquidity position it well for potential mergers and acquisitions, alongside continued shareholder returns. Valuation metrics such as the forward EBITDA and EPS multiples, combined with strategic initiatives and the potential rebound in its truck businesses, support the Buy rating and the reiterated price target of $185.
In another report released on February 13, Bank of America Securities also maintained a Buy rating on the stock with a $195.00 price target.