Penske Automotive price target lowered to $155 from $160 at JPMorgan

JPMorgan lowered the firm’s price target on Penske Automotive (PAG) to $155 from $160 and keeps an Underweight rating on the shares. 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.