Deep Dive Into Lithia Motors Stock: Analyst Perspectives (6 Ratings)
In the latest quarter, 6 analysts provided ratings for Lithia Motors (NYSE:LAD), showcasing a mix of bullish and bearish perspectives.
The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 1 | 3 | 0 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 1 | 0 | 0 | 0 |
| 3M Ago | 1 | 0 | 3 | 0 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $286.33, a high estimate of $330.00, and a low estimate of $248.00. This current average has decreased by 6.38% from the previous average price target of $305.83.
Breaking Down Analyst Ratings: A Detailed Examination
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 | $330.00 | $320.00 |
| 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 |
Key Insights:
- Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Lithia Motors. This information offers a snapshot of how analysts perceive 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 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.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Lithia Motors's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
Stay up to date on Lithia Motors analyst ratings.
All You Need to Know About 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 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.
Lithia Motors: Financial Performance Dissected
Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.
Revenue Growth: Lithia Motors's remarkable performance in 3 months is evident. As of 31 March, 2024, the company achieved an impressive revenue growth rate of 22.77%. This signifies 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: 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): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 2.59%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): Lithia Motors's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.78% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: Lithia Motors's debt-to-equity ratio is below the industry average at 2.08, reflecting a lower dependency on debt financing and a more conservative financial approach.
Understanding the Relevance of Analyst Ratings
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
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.
This article was generated by Benzinga's automated content engine and reviewed by an editor.