Asbury Automotive downgraded to Underweight from Neutral at JPMorgan

JPMorgan downgraded Asbury Automotive (ABG) to Underweight from Neutral with a price target of $225, down from $235. The firm sees a negative risk/reward for the auto retail sector with the shares outperforming despite “weakening fundamentals.” Industry fundamentals have weakened even before the impact of tariffs have flowed through to vehicle pricing, the analyst tells investors in a research note. As a result, JPMorgan sees potential for modest multiple compression in the group. It downgraded three names as part of a Q2 earnings preview.