Market Overview

UPDATE: Credit Suisse Reinstates Group 1 Automotive with Neutral on Upside Potential, Gross Margin Pressure

Related GPI
Top 4 NYSE Stocks In The Auto Dealerships Industry With The Highest Dividend Yield
Group 1 Automotive Acquires Chevrolet And Mazda Dealerships In Houston, Texas

In a report published Wednesday, Credit Suisse analyst Gary Balter reinstated coverage on Group 1 Automotive (NYSE: GPI) with a Neutral rating and $70.00 price target.

In the report, Balter noted, “We believe the upside potential from strong new vehicle sales may be offset by new vehicle gross margin pressure and below average expense leverage in the nearterm. The setup for GPI becomes more intriguing by the back half of 2013, in our view, as expense growth moderates, centralization initiatives drive savings, an appreciating Yen boosts J3 sales, and accretion from the UAB acquisition ramps up. We are establishing '13, '14 and '15 estimates of $5.05, $5.60 and $6.05, respectively. Our $70 price target reflects 12.5x our '14 estimate. We believe GPI is one of the best managed and best positioned public auto dealers.”

Group 1 Automotive closed on Tuesday at $59.51.

Posted-In: Credit SuisseAnalyst Color Initiation Analyst Ratings

 

Related Articles (GPI)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters