Group 1 Automotive initiated with an Outperform at Evercore ISI

Evercore ISI initiated coverage of Group 1 Automotive (GPI) with an Outperform rating and $500 price target The firm believes about 80% of dealer sentiment may be driven by new car SAAR, even though it drives just about 20% of profits, adding that it is “bullish on SAAR.” In addition to just SAAR, the firm sees a multiyear runway for dealers on capital allocation, “Defensive cyclical” EPS power and car-parc driven strength, the analyst tells investors.