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 $29.00 to $38.00. Deutsche Bank noted, “AutoNation reported better than expected results - AN reported Q4 EPS of $0.67 vs. our $0.60 est and cons of $0.64. The solid results were primarily driven by strong new car volumes ($0.05 of upside vs. est) and SG&A leverage ($0.02 of upside vs. est). New vehicle sales volumes continue to outperform the industry (+17.4% vs. industry retail sales +12.9%), likely driven by favorable geographical mix as CA and FL are coming off low bases in '11. Used unit growth of 1.8% was one area of weakness. But they displayed the power of their scale as they plan to unify all their mass market dealers under the AutoNation brand. Maintain Sell rating based on valuation.” AutoNation closed on Thursday at $48.50.