Goldman Sachs raised the firm’s price target on Lithia & Driveway to $335 from $300 and keeps a Neutral rating on the shares after its Q2 earnings beat. The company’s results were better-than-expected despite the management’s estimate for a $1.10 headwind related to the CDK systems outage, and Lithia also expects to surpass their target of at least $150M in annualized SG&A cost reductions during Q3, with the management noting the potential to double their target and reach a run rate of about $300M either by year-end or during FY25, the analyst tells investors in a research note.
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