Lithia & Driveway price target lowered to $310 from $350 at Craig-Hallum

Craig-Hallum lowered the firm’s price target on Lithia & Driveway to $310 from $350 and keeps a Buy rating on the shares. While Q1 results were negatively impacted by operational integrations of recent acquisitions, the firm was encouraged to hear management’s refined focus going forward is on harvesting synergies and accelerating its share repurchases while moderating the aggressive M&A pace. Network expansion and M&A have proven to be highly strategic, synergistic and accretive, so Craig-Hallum is supportive of the strategy, but thinks the setup for the stock is better during the synergy optimization period than during the acquisition/integration period.