Wells Fargo analyst Colin Langan raised the firm’s price target on Lithia & Driveway to $262 from $233 and keeps an Equal Weight rating on the shares. The firm notes shares fell 8% after a large Q4 miss on margin & sales. Wells is cautious that falling prices will erode GPUs faster than expected. Also, expected SG&A offsets to lower gross may fall short, the firm adds.
Published first on TheFly
See the top stocks recommended by analysts >>
Read More on LAD:
- Lithia & Driveway falls -8.6%
- Lithia & Driveway reports Q4 EPS $9.05, consensus $10.10
- Lithia & Driveway (LAD) Increases Revenue 11% and Reports Diluted EPS of $9.00
- Lithia & Driveway downgraded to Equal Weight from Overweight at Wells Fargo
- Used car prices still have room to decrease ‘significantly,’ says Morgan Stanley
