Market Overview

UPDATE: Deutsche Bank Upgrades AutoNation to Hold on 1Q13 EPS

Related AN
AutoNation Earnings in Line, Up Y/Y - Analyst Blog
Earnings Scheduled For April 17, 2014

In a report published Friday, Deutsche Bank analyst Rod Lache upgraded the rating on AutoNation (NYSE: AN) from Sell to Hold, and slightly raised the price target from $38.00 to $39.00.

In the report, Lache noted, “AutoNation reported 1Q13 EPS of $0.68, outperforming consensus / DBe of $0.64 / $0.62. Although a number of (likely) non-recurring items helped the quarter, we noted some significant bright spots in the Used and Parts / Service business that we believe have positive future implications and indicate that internal initiatives are bearing fruit. Given these positive indications, as well as an improved valuation (better than expected Service earnings, F&I per-unit, and SG&A leverage has led to a substantial reduction in AN's multiple; currently 13x vs. 15x when we downgraded the stock on 6/23/12), we are adjusting our recommendation to Hold from Sell.”

AutoNation closed on Thursday at $43.30.

Posted-In: Deutsche BankAnalyst Color Upgrades Analyst Ratings

 

Most Popular

Related Articles (AN)

Around the Web, We're Loving...

Partner Network

Get Benzinga's News Delivered Free