7 analysts have shared their evaluations of Lithia Motors (NYSE:LAD) during the recent three months, expressing a mix of bullish and bearish perspectives.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 3 | 1 | 3 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 2 | 0 | 3 | 0 | 0 |
| 3M Ago | 1 | 0 | 0 | 0 | 0 |
Analysts have recently evaluated Lithia Motors and provided 12-month price targets. The average target is $295.71, accompanied by a high estimate of $385.00 and a low estimate of $248.00. Experiencing a 6.55% decline, the current average is now lower than the previous average price target of $316.43.
Analyzing Analyst Ratings: A Detailed 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.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Rajat Gupta | JP Morgan | Raises | Overweight | $280.00 | $270.00 |
| Rajat Gupta | JP Morgan | Lowers | Neutral | $270.00 | $285.00 |
| Ronald Josey | Citigroup | Lowers | Neutral | $280.00 | $320.00 |
| Ryan Sigdahl | Craig-Hallum | Lowers | Buy | $310.00 | $350.00 |
| Colin Langan | Wells Fargo | Lowers | Equal-Weight | $248.00 | $290.00 |
| Ronald Jewsikow | Guggenheim | Lowers | Buy | $297.00 | $320.00 |
| John Murphy | B of A Securities | Raises | Buy | $385.00 | $380.00 |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Lithia Motors. This insight gives a snapshot of 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 set price targets as an estimate of a stock's future value. Comparing the current and prior price targets provides insight into how analysts' expectations have changed over time. This information can be valuable for investors seeking to understand consensus views on the stock's potential future performance.
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.
Get to Know Lithia Motors Better
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 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.
A Deep Dive into Lithia Motors's 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 22.77% as of 31 March, 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: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 1.9%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Lithia Motors's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of 2.59%, the company may face hurdles in achieving optimal financial returns.
Return on Assets (ROA): Lithia Motors's ROA excels beyond industry benchmarks, reaching 0.78%. This signifies efficient management of assets and strong financial health.
Debt Management: With a below-average debt-to-equity ratio of 2.08, Lithia Motors adopts a prudent financial strategy, indicating a balanced approach to debt management.
Understanding the Relevance of Analyst Ratings
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
