Evaluating Lithia Motors: Insights From 4 Financial Analysts

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4 analysts have shared their evaluations of Lithia Motors LAD during the recent three months, expressing a mix of bullish and bearish perspectives.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 0 2 2 0 0
Last 30D 0 0 2 0 0
1M Ago 0 2 0 0 0
2M Ago 0 0 0 0 0
3M Ago 0 0 0 0 0

The 12-month price targets, analyzed by analysts, offer insights with an average target of $356.0, a high estimate of $400.00, and a low estimate of $315.00. This current average reflects an increase of 19.06% from the previous average price target of $299.00.

Understanding Analyst Ratings: A Comprehensive Breakdown

A clear picture of Lithia Motors's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Colin Langan Wells Fargo Raises Equal-Weight $315.00 $298.00
Kate McShane Goldman Sachs Raises Neutral $334.00 $300.00
Daniel Imbro Stephens & Co. Maintains Overweight $375.00 -
Douglas Dutton Evercore ISI Group Announces Outperform $400.00 -

Key Insights:

  • Action Taken: Responding to changing market dynamics and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their response to recent developments related to Lithia Motors. This offers insight into analysts' perspectives on the current state of the company.
  • Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Lithia Motors compared to the broader market.
  • Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of Lithia Motors's stock. This examination reveals shifts in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Lithia Motors's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on Lithia Motors analyst ratings.

Get to Know Lithia Motors Better

Lithia Motors is a retailer of new and used vehicles and related services. The company offers over 45 brands of vehicles at about 350 stores globally including 28 U.S. states at year-end 2022 and entered Canada in mid-2021 with the purchase of Pfaff Automotive and bought Jardine and soon Pendragon in the U.K. in 2023. The company has expanded largely through the acquisition of dealerships in smaller regional markets but now seeks to grow in any part of the U.S. and we expect more deals over time in the U.S. and abroad. Annual revenue in 2022 was $28.2 billion and we see over $50 billion possible in 2025. In 2022, new-car sales were about 46% of total revenue. Lithia was founded in 1946, went public in 1996, and is now the largest U.S. auto dealer. It is based in Medford, Oregon.

Lithia Motors: Delving into Financials

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

Revenue Growth: Over the 3 months period, Lithia Motors showcased positive performance, achieving a revenue growth rate of 13.45% as of 30 September, 2023. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Lithia Motors's net margin is impressive, surpassing industry averages. With a net margin of 3.16%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): Lithia Motors's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.45% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Lithia Motors's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.45% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Lithia Motors's debt-to-equity ratio is below the industry average. With a ratio of 1.7, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

The Significance of Analyst Ratings Explained

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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