As previously reported, Morgan Stanley upgraded Group 1 Automotive to Overweight from Equal Weight with a price target of $430, up from $285. The firm believes its previous latent concerns about the franchise dealer business model have “proven largely mitigated” and it now sees greater risk in other pockets of its U.S. autos coverage. In that context, the firm upgrades the franchise dealer complex with a positive multiple re-rating given that it sees greater risk in auto companies with entanglements to China, regulatory risk, EV investments, and calls on cash for compute and AI infrastructure.
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Read More on GPI:
- Group 1 Automotive upgraded to Overweight from Equal Weight at Morgan Stanley
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- Group 1 Automotive price target raised to $420 from $360 at JPMorgan
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