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Strategic Divestment and Strong Earnings Outlook Drive Buy Rating for Lithia Motors

Strategic Divestment and Strong Earnings Outlook Drive Buy Rating for Lithia Motors

Analyst Bret Jordan of Jefferies maintained a Buy rating on Lithia Motors, with a price target of $400.00.

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Bret Jordan has given his Buy rating due to a combination of factors including the strategic decision by Lithia Motors to sell its 51% stake in a North American joint venture. This move is seen as a positive step, allowing the company to streamline its operations and focus on its core business areas.
Additionally, the updated earnings estimates following the sale reflect a strong financial outlook, with projected adjusted earnings per share (EPS) for the upcoming quarters showing significant growth. The anticipated EPS for the third quarter of 2025 is $8.85, with full-year estimates for 2025 and 2026 at $34.84 and $37.01 respectively, indicating a robust financial trajectory for the company.

According to TipRanks, Jordan is a 5-star analyst with an average return of 11.8% and a 65.96% success rate. Jordan covers the Consumer Cyclical sector, focusing on stocks such as Winnebago Industries, Advance Auto Parts, and Lithia Motors.

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