Benchmark Co. analyst Michael Albanese maintained a Buy rating on Penske Automotive Group today and set a price target of $185.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Michael Albanese has given his Buy rating due to a combination of factors that highlight Penske Automotive Group’s strengths and future potential. Despite a mixed quarter with a sales miss, the company showed resilience with a beat on adjusted EBITDA and EPS, demonstrating effective cost discipline and profitability gains. The diversified business model, which includes a strong presence in premium brands, has helped offset weaknesses in the UK market, particularly in the luxury segment.
Moreover, Penske Automotive Group is well-positioned financially with low leverage, substantial liquidity, and robust cash flow, which supports ongoing capital returns through dividends and buybacks. The company’s strategic focus on portfolio optimization and the stabilization of its truck and PTS segments provide additional growth opportunities. The valuation remains attractive, with multiples that suggest room for appreciation, reinforcing the Buy rating with a price target of $185.
In another report released yesterday, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a $188.00 price target.
Based on the recent corporate insider activity of 27 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of PAG in relation to earlier this year.