Penske Automotive price target raised to $195 from $185 at Citi

Citi analyst Michael Ward raised the firm’s price target on Penske Automotive (PAG) to $195 from $185 and keeps a Buy rating on the shares. Penske has the least exposure to an increase in tariffs in the dealer group, the analyst tells investors in a research note. The firm says the company’s gross profit selling new light vehicles and trucks accounted for 26% of total gross in 2024, but its operations outside the U.S. account for 40%, reducing overall exposure to about 16% of company gross. Penske has the largest exposure to import and luxury brands in the US, but about 50% of unit sales would be subject to the higher tax, further limiting the impact on performance, contends Citi. It cites normalizing multiples for the group for the target increase.