Penske Automotive price target raised to $205 from $190 at BofA

BofA analyst John Murphy raised the firm’s price target on Penske Automotive (PAG) to $205 from $190 and keeps a Buy rating on the shares. The firm tweaked its auto industry volume estimates for 2025 and 2026 slightly lower to account for pending disruptions from tariffs, potential rare earth shortages, and macro volatility, telling investors that it now sees 2025 and 2026 U.S. industry sales at 16.25M and 16.9M units and North America production at 15.75M and 16.4M units, respectively. Although at the current moment there are several headwinds on the macro level, the firm expects most of these obstacles to be resolved by the end of 2025 to early 2026, adds the analyst, who revised price targets across the firm’s auto industry coverage based on estimate changes and rolled forward its valuation year to calendar 2026.