Demystifying Lithia Motors: Insights From 8 Analyst Reviews

Across the recent three months, 8 analysts have shared their insights on Lithia Motors LAD, expressing a variety of opinions spanning from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Insights from analysts' 12-month price targets are revealed, presenting an average target of $395.38, a high estimate of $440.00, and a low estimate of $346.00. Marking an increase of 1.98%, the current average surpasses the previous average price target of $387.71.

Understanding Analyst Ratings: A Comprehensive Breakdown

The perception of Lithia Motors by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.

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 provide insights into price targets, offering estimates for the future value of Lithia Motors's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Lithia Motors's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Lithia Motors analyst ratings.

Delving into Lithia Motors's Background

Lithia Motors is a retailer of new and used vehicles and related services. The company offers over 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 2024 was $36.2 billion and we see over $50 billion possible in a few years. The US was 78% of 2024 revenue and the UK second at 19%, due to the 2024 Pendragon acquisition. In 2024, new vehicle 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.

Lithia Motors: Delving into Financials

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Revenue Growth: Over the 3 months period, Lithia Motors showcased positive performance, achieving a revenue growth rate of 19.54% as of 31 December, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Lithia Motors's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.36% 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 3.26%, the company demonstrates effective use of equity capital and strong financial performance.

Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.93%, the company showcases effective utilization of assets.

Debt Management: Lithia Motors's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 2.08.

Analyst Ratings: Simplified

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.

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