Morgan Stanley analyst Adam Jonas downgraded AutoNation (AN) to Underweight from Equal Weight with a price target of $96, down from $104. The analyst reduced franchise dealer forecasts and downgraded AutoNation following "bellwether" CarMax’s (KMX) disappointing results. Falling used prices and rising interest rates may take affordability to a "tipping point," driving downside to selling prices and units, Jonas tells investors in a research note. He is looking for better entry points into the sector.
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