Breaking Down Lithia Motors: 7 Analysts Share Their Views


In the latest quarter, 7 analysts provided ratings for Lithia Motors LAD, showcasing a mix of bullish and bearish perspectives.

The table below provides a concise overview of recent ratings by analysts, offering insights into the changing sentiments over the past 30 days and drawing comparisons with the preceding months for a holistic perspective.

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

Analysts have recently evaluated Lithia Motors and provided 12-month price targets. The average target is $345.57, accompanied by a high estimate of $400.00 and a low estimate of $230.00. Surpassing the previous average price target of $327.60, the current average has increased by 5.49%.

Decoding Analyst Ratings: A Detailed Look

The standing of Lithia Motors among financial experts becomes clear 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
John Murphy B of A Securities Raises Buy $385.00 $380.00
John Murphy B of A Securities Lowers Buy $380.00 $440.00
Adam Jonas Morgan Stanley Raises Underweight $230.00 $220.00
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: Offering a comprehensive view, analysts assess stocks qualitatively, spanning from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Lithia Motors compared to the broader market.
  • Price Targets: Understanding forecasts, analysts offer estimates for Lithia Motors's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

For valuable insights into Lithia Motors's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

Stay up to date on Lithia Motors analyst ratings.

Unveiling the Story Behind Lithia Motors

Lithia Motors is a retailer of new and used vehicles and related services. The company offers about 50 brands of vehicles at nearly 500 stores globally across the US, Canada, and UK. The company has expanded largely through the acquisition of dealerships in smaller regional markets but now seeks to grow in any part of the US and we expect more deals over time in the US and, at times, abroad. Annual revenue in 2023 was $31 billion and we see over $50 billion possible in a few years. The US was 90% of 2023 revenue and the UK second at 6%, the latter should rise significantly with the early 2024 Pendragon acquisition. In 2023, new-car sales were about 49% of total revenue. Lithia was founded in 1946, went public in 1996, and is the largest US auto dealer. It is based in Medford, Oregon.

Understanding the Numbers: Lithia Motors's Finances

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

Positive Revenue Trend: Examining Lithia Motors's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 10.48% as of 31 December, 2023, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Net Margin: Lithia Motors's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.78% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Lithia Motors's ROE stands out, surpassing industry averages. With an impressive ROE of 3.5%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): Lithia Motors's ROA excels beyond industry benchmarks, reaching 1.13%. This signifies efficient management of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 1.82, Lithia Motors adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Core of Analyst Ratings: What Every Investor Should Know

Analysts are specialists within banking and financial systems that typically report for specific stocks or within defined sectors. These people research company financial statements, sit in conference calls and meetings, and speak with relevant insiders to determine what are known as analyst ratings for stocks. Typically, analysts will rate each stock once a quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

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

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