Decoding 6 Analyst Evaluations For AutoNation
Throughout the last three months, 6 analysts have evaluated AutoNation (NYSE:AN), offering a diverse set of opinions from bullish to bearish.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 3 | 1 | 2 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 1 | 0 | 0 | 0 | 0 |
| 2M Ago | 1 | 0 | 2 | 0 | 0 |
| 3M Ago | 1 | 0 | 0 | 0 | 0 |
In the assessment of 12-month price targets, analysts unveil insights for AutoNation, presenting an average target of $185.83, a high estimate of $220.00, and a low estimate of $155.00. This current average has increased by 6.29% from the previous average price target of $174.83.
Analyzing Analyst Ratings: A Detailed Breakdown
In examining recent analyst actions, we gain insights into how financial experts perceive AutoNation. The following summary 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 |
|---|---|---|---|---|---|
| Douglas Dutton | Evercore ISI Group | Raises | Outperform | $220.00 | $200.00 |
| Ali Faghri | Guggenheim | Raises | Buy | $187.00 | $169.00 |
| Rajat Gupta | JP Morgan | Raises | Neutral | $155.00 | $142.00 |
| Colin Langan | Wells Fargo | Raises | Equal-Weight | $169.00 | $153.00 |
| Ronald Jewsikow | Guggenheim | Raises | Buy | $169.00 | $165.00 |
| John Murphy | B of A Securities | Lowers | Buy | $215.00 | $220.00 |
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 AutoNation. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of AutoNation compared to the broader market.
- Price Targets: Analysts navigate through adjustments in price targets, providing estimates for AutoNation's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of AutoNation's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
Stay up to date on AutoNation analyst ratings.
Delving into AutoNation's Background
AutoNation is the second largest automotive dealer in the United States, with 2023 revenue of about $27 billion and over 250 dealerships, plus 53 collision centers. The firm also has 23 AutoNation USA used-vehicle stores, a captive lender, four auction sites, and three parts distributors all across 21 states primarily in Sunbelt metropolitan areas. New-vehicle sales account for nearly half of revenue; the company also sells used vehicles, parts, and repair services as well as auto financing. The company (formerly Republic Industries) spun off its waste management unit (Republic Services) in 1999 and its car rental businesses (ANC Rental) in 2000. Wayne Huizenga founded the company in the 1990s to bring the rollup acquisition strategy to auto retailing, which has proved to be a smart move.
AutoNation: A Financial Overview
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, AutoNation showcased positive performance, achieving a revenue growth rate of 1.36% as of 31 March, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Consumer Discretionary sector.
Net Margin: AutoNation's net margin is impressive, surpassing industry averages. With a net margin of 2.93%, the company demonstrates strong profitability and effective cost management.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 8.32%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): AutoNation's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.58%, the company showcases efficient use of assets and strong financial health.
Debt Management: With a below-average debt-to-equity ratio of 3.34, AutoNation adopts a prudent financial strategy, indicating a balanced approach to debt management.
The Core of Analyst Ratings: What Every Investor Should Know
Experts in banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their comprehensive research involves attending company conference calls and meetings, analyzing financial statements, and engaging with insiders to generate what are known as analyst ratings for stocks. Typically, analysts assess and rate each stock once per quarter.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
This article was generated by Benzinga's automated content engine and reviewed by an editor.