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Wall Street JournalEvaluating Lithia Motors: Insights From 10 Financial Analysts
10 analysts have shared their evaluations of Lithia Motors (NYSE:LAD) during the recent three months, expressing a mix of bullish and bearish perspectives.
The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 3 | 5 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 0 | 2 | 0 | 0 |
| 2M Ago | 0 | 2 | 0 | 0 | 0 |
| 3M Ago | 2 | 1 | 2 | 0 | 0 |
The 12-month price targets, analyzed by analysts, offer insights with an average target of $328.4, a high estimate of $375.00, and a low estimate of $299.00. Marking an increase of 14.83%, the current average surpasses the previous average price target of $286.00.
Deciphering Analyst Ratings: An In-Depth Analysis
An in-depth analysis of recent analyst actions unveils how financial experts perceive Lithia Motors. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Colin Langan | Wells Fargo | Lowers | Equal-Weight | $299.00 | $302.00 |
| Ronald Josey | Citigroup | Raises | Neutral | $320.00 | $280.00 |
| Adam Jonas | Morgan Stanley | Raises | Equal-Weight | $310.00 | $225.00 |
| Jeff Lick | Stephens & Co. | Announces | Overweight | $360.00 | - |
| Rajat Gupta | JP Morgan | Raises | Overweight | $375.00 | $315.00 |
| Ali Faghri | Guggenheim | Announces | Buy | $338.00 | - |
| Rajat Gupta | JP Morgan | Raises | Overweight | $315.00 | $280.00 |
| Colin Langan | Wells Fargo | Raises | Equal-Weight | $302.00 | $266.00 |
| Kate McShane | Goldman Sachs | Raises | Neutral | $335.00 | $300.00 |
| John Murphy | B of A Securities | Raises | Buy | $330.00 | $320.00 |
Key Insights:
- Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Lithia Motors. This offers insight into analysts' perspectives on the current state of the company.
- Rating: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Lithia Motors compared to the broader market.
- Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Lithia Motors's stock. This comparison reveals trends in analysts' expectations over time.
Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Lithia Motors's market standing. Stay informed and make well-considered decisions with our Ratings Table.
Stay up to date on Lithia Motors analyst ratings.
Unveiling the Story Behind Lithia Motors
Lithia Motors is a retailer of new and used vehicles and related services. The company offers over 50 brands of vehicles at nearly 500 stores globally across the US, Canada, and UK. The company has expanded largely through the acquisition of dealerships in smaller regional markets but now seeks to grow in any part of the US and we expect more deals over time in the US and, at times, abroad. Annual revenue in 2023 was $31 billion and we see over $50 billion possible in a few years. The US was 90% of 2023 revenue and the UK second at 6%, the latter should rise to around 20% with the 2024 Pendragon acquisition. In 2023, new-car sales were about 49% of total revenue. Lithia was founded in 1946, went public in 1996, and is the largest US auto dealer. It is based in Medford, Oregon.
Breaking Down Lithia Motors's Financial Performance
Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.
Revenue Growth: Lithia Motors displayed positive results in 3 months. As of 30 June, 2024, the company achieved a solid revenue growth rate of approximately 13.81%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.
Net Margin: Lithia Motors's net margin is impressive, surpassing industry averages. With a net margin of 2.32%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): Lithia Motors's ROE excels beyond industry benchmarks, reaching 3.37%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Lithia Motors's ROA excels beyond industry benchmarks, reaching 0.94%. This signifies efficient management of assets and strong financial health.
Debt Management: Lithia Motors's debt-to-equity ratio is below the industry average. With a ratio of 2.21, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
Analyst Ratings: What Are They?
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
Which Stocks Are Analysts Recommending Now?
Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.
This article was generated by Benzinga's automated content engine and reviewed by an editor.