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

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In a report published Friday, Deutsche Bank reiterated its Sell rating on AutoNation (NYSE: AN), 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%.”

AutoNation closed on Thursday at $45.76.

Latest Ratings for AN

DateFirmActionFromTo
Feb 2017Evercore ISI GroupDowngradesBuyHold
Feb 2017SusquehannaInitiates Coverage OnNeutral
Oct 2016Bank of AmericaDowngradesBuyNeutral

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Posted-In: Deutsche BankAnalyst Color Price Target Analyst Ratings

 

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