UPDATE: Deutsche Bank Reiterates Hold Rating, Raises PT on Asbury Automotive Group

In a report published Wednesday, Deutsche Bank reiterated its Hold rating on Asbury Automotive Group

, and raised its price target from $25.00 to $27.00. Deutsche Bank noted, “Asbury's Q3 results were ahead of expectations. ABG reported Q3 EPS of $0.72 vs. our $0.64 estimate and consensus of $0.62. The strong result was primarily driven by very strong performance in finance and insurance earnings ($0.07 of the EPS upside). Better-than-expected used and parts and service gross margins also contributed, with the new vehicle segment underperforming slightly on a weakening in margin. At the same time, ABG continues to execute on their cost efficiency plan, as SG&A as a percent of gross margin dropped another 10bps seq to 72.3% (down 490bps yoy). We maintain our Hold rating based on valuation.” Asbury Automotive Group closed on Tuesday at $30.89.