UPDATE: Sterne Agee Upgrades Group 1 Automotive to Buy on Valuation

Sterne Agee raises its rating on Group 1 Automotive GPI from Neutral to Buy. Price target is also increased, going from $63 to $65. Sterne Agee comments, "We have upgraded GPI to Buy from Neutral to reflect current valuation levels, higher earnings assumptions and the continuation of a modest and steady recovery in U.S. vehicle demand. We have increased our price target to $65 per share from $63 per share to reflect our higher earnings assumptions but continue to use the low end of the targeted valuation range owing to industry uncertainties. In addition, GPI has been consistently returning cash to shareholders in the form of dividends and share repurchase and enhancing growth through acquisitions." GPI closed at $50.60 on Friday.