UPDATE: Goldman Sachs Downgrades Penske Automotive Group to Sell
Goldman Sachs reduced its rating on Penske Automotive Group (NYSE: PAG) from Neutral to Sell and reduced its price target from $29 to $27 on diminished outside potential following share outperformance.
Goldman Sachs commented, "We see the potential for downward estimate revisions as the main source of underperformance for PAG shares. One area of risk is Europe, which accounts for 35% of PAG sales. While Penske's largest exposure is the UK, which has been holding up well relative to the rest of the region, even modeling in mid-single-digit growth over the next 18 months, combined with a US 2012/2013 SAAR of 14.3mn/15.5mn gets us below the Street. We also believe PAG's high exposure to upper and specialty luxury presents an additional headwind in this more frugal environment with the segment's share having declined 30bp ytd."
Penske Automotive Group closed at $24.22 on Monday.
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