Lithia & Driveway downgraded to Equal Weight from Overweight at Wells Fargo

Wells Fargo analyst Colin Langan downgraded Lithia & Driveway to Equal Weight from Overweight with a price target of $233, up from $212. Langan expects gross margins to begin to fall back to their long-term averages from current record highs, and is increasingly concerned that gross margins will also normalize in both used and F&I segments, which also are at record highs, the analyst tells investors in a research note. The analyst sees a balanced risk reward profile for the stock given its current share price.