JPMorgan downgraded Lithia & Driveway to Neutral from Overweight with a price target of $295, down from $395. The analyst came away from the company’s Q3 results with diminished confidence in its differentiated earnings trajectory in the near-to medium-term. While the shares screen cheap from a valuation perspective and Lithia’s balance sheet leverage is amongst the lowest in the group, better visibility on the company’s return to pre-pandemic levels of same store gross profit growth outperformance is needed to drive a re-rating, the analyst tells investors in a research note.
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Read More on LAD:
- Lithia & Driveway downgraded to Neutral from Overweight at JPMorgan
- Lithia & Driveway price target lowered to $300 from $360 at Craig-Hallum
- Lithia & Driveway price target lowered to $259 from $275 at Wells Fargo
- Lithia & Driveway reports Q3 adjusted EPS $9.25, consensus $10.08
- Lithia & Driveway (LAD) Reports Record Third Quarter Revenue of $8.3 Billion, 13% Increase