Penske Automotive downgraded to Underweight from Neutral at JPMorgan

JPMorgan downgraded Penske Automotive to Underweight from Neutral with a price target of $140, down from $150. While U.K. “is on a solid footing near-term,” the benefits of Penske’s diversity and mix in the business that was on display over the last two years are likely to diminish going forward as earnings begin to normalize meaningfully, the analyst tells investors in a research note. The firm also does not see the company’s skewed exposure to luxury as a benefit in the near to medium-term. As such, it sees the potential for narrowing of the stock’s 40% relative valuation premium towards the long-term average of 10%.