UPDATE: Deutsche Bank Reiterates Sell Rating, Raises PT on AutoNation

In a report published Friday, Deutsche Bank reiterated its Sell rating on AutoNation

, and raised its price target from $25.00 to $27.00. Deutsche Bank noted, “In-line quarter; F&I division accounted for bulk of the growth. AutoNation reported 3Q12 EPS of $0.66; in-line with consensus. While unit volumes were up 16% YOY, lower ATP's and gross margins led to revenue only growing 12% and EBIT by 8%. Finance & Insurance growth (driven by strong new unit growth and higher YOY per-units) accounted for 53% of the overall gross profit growth in the quarter. On the other hand, despite new unit volume up 22%, lower YOY gross margins (vs tough post-tsunami comp's) and lower ATP's resulted in New Vehicle gross profit growth of only 4.7%. We maintain Sell rating based on valuation.” AutoNation closed on Thursday at $45.76.