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BUZZ-US auto dealers' stocks climb as Stephens initiates coverage

Reuters · 6d ago

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BUZZ-US auto dealers' stocks climb as Stephens initiates coverage

** Shares of Lithia Motors LAD.N rise 3.6% to $271.09, AutoNation AN.N rise 1.8% to $161.57, Group 1 Automotive GPI.N rise ~2% to $346.80, Penske Automotive Group PAG.N rise 1.1% to $150.09 and Sonic Automotive SAH.N rise 2.5% to $54.90

** Stephens initiates coverage for the "Public 6" franchised U.S. auto dealerships

Company	Brokerage rating	Brokerage PT	LSEG data median PT
Asbury Automotive Group ABG.N	equal-weight	$216	$240
AutoNation	over-weight	$210	$205
Group 1 Automotive	equal-weight	$394	$397
Lithia Motors	over-weight	$360	$345
Penske Automotive Group	equal-weight	$161	$170.30
Sonic Automotive	equal-weight	$64	$63

** Brokerage believes the six public auto dealers generate diverse cash flow streams owing to essential transportation

** "The current stock setup (for the companies) is tricky due to an on-going earnings from a COVID era boom" - brokerage

** Sees companies as "shareholder-friendly" businesses in long term

** Up to last close, the S&P 500 automotive retail sub-index .SPLRCAUTR was up 16.5% YTD

(Reporting by Aatreyee Dasgupta)

((Aatreyee.Dasgupta@thomsonreuters.com))

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