Lithia & Driveway price target raised to $375 from $315 at JPMorgan

JPMorgan raised the firm’s price target on Lithia & Driveway to $375 from $315 and keeps an Overweight rating on the shares. The firm established 2025 price targets for the franchise dealer sector based on its newly rolled-out 2026 estimates. With interest rate cuts imminent, JPMorgan sees outcomes ranging from a “potential goldilocks scenario that can lead to a re-rating, to, at worst an environment that stays the current course,” the analyst tells investors in a research note. The firm says that barring recessionary periods, 2025 is likely to be the first time since 1980 that used and new car monthly payment are likely to decline year-over-year off of a base of new and used car sales that are 5%-10% below normalized levels.