UPDATE: Sterne Agee Raises Target on Group 1 Automotive to $63

Sterne Agee reiterates its Neutral rating on Group I Automotive GPI and raises its price target to $63, up $7, reflecting the steady though modest recovery in vehicle demand in US. Sterne Agee says, "Group 1 and the Dealer Group should continue to benefit from a modest and steady recovery in U.S. vehicle demand and cost savings from restructuring actions completed during the industry downturn. GPI's new retail unit sales were up 4.6% in 2011, about one-half the gain of the overall market owing to GPI's concentration with the Japanese brands." GPI closed at $55.80 a share yesterday.