UPDATE: Morgan Stanley Reiterates on Asbury Automotive Group on Elevated Expectations

In a report published Wednesday, Morgan Stanley analyst Ravi Shanker reiterated an Underweight rating on Asbury Automotive Group ABG, and raised the price target from $42.00 to $43.00. In the report, Morgan Stanley noted, “ABG posted a small OP beat on the back of better than expected gross margin and SG&A performance. Strong luxury sales helped drive stronger New margins, similar to what we saw with AN, but with elevated expectations surrounding P&S and F&I, we remain UW.” Asbury Automotive Group closed on Tuesday at $49.11.