UPDATE: Stifel Nicolaus Raises PT to $80 on Group 1 Automotive on Car Sales Outlook
Stifel Nicolaus reiterated its Buy rating on Group 1 Automotive (NYSE: GPI) and increased its price target from $62 to $80.
Stifel Nicolaus noted, "[W]e believe the recent U.S. vehicle sales ramp has generally been driven by credit availability and improving housing sentiment, but not vehicle breakdowns. Vehicles remain substantially older than average, meaning we could potentially see more sensitivity to cold weather snaps this winter. Japanese brands are outperforming, and GPI has outsized exposure to the J-3 relative to most peers. Some of this is due to easier comparisons (lapping supply shortages), but as fuel inflation returns to the forefront of the U.S. consumers' mindset, we think consumers will continue to favor Japanese brands relative to domestic and European peers (though domestics rapidly improving)."
Group 1 Automotive closed at $63.22 on Friday.
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