Citi analyst Michael Ward has maintained their bullish stance on LAD stock, giving a Buy rating today.
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Michael Ward has given his Buy rating due to a combination of factors that suggest a positive outlook for Lithia Motors. One significant reason is the anticipated rebound in dealer stocks, which have historically increased in value following earnings reports. This trend, coupled with positive insights from the second quarter earnings that the market may have overlooked, such as improved variable gross margins and reduced costs, supports a favorable view of the stock.
Additionally, Lithia Motors has been actively repurchasing its shares, with $629 million bought back over the past 18 months, and this trend is expected to continue. The company is also poised to benefit from increased merger and acquisition activity due to favorable trade agreements. Furthermore, the potential for a reduction in Federal Reserve rates by September could create a more favorable economic environment, enhancing the attractiveness of Lithia Motors’ stock.
According to TipRanks, Ward is a 4-star analyst with an average return of 5.3% and a 53.85% success rate. Ward covers the Consumer Cyclical sector, focusing on stocks such as Lithia Motors, General Motors, and Group 1 Automotive.
In another report released today, J.P. Morgan also maintained a Buy rating on the stock with a $315.00 price target.