Lithia & Driveway price target raised to $320 from $280 at Citi

Citi raised the firm’s price target on Lithia & Driveway to $320 from $280 and keeps a Neutral rating on the shares. The demand environment is normalizing as new inventory supply improves and car makers increase incentive spend, which bodes well for Lithia’s new and used car demand, the analyst tells investors in a research note. However, Citi says Q2 new vehicles sales came in below expectations while used sales came in better than expected. The price target increase reflects the macro environment incrementally improving, contends the firm.