The Analyst Verdict: Lithia Motors In The Eyes Of 8 Experts

In the latest quarter, 8 analysts provided ratings for Lithia Motors LAD, showcasing a mix of bullish and bearish perspectives.

The following table provides a quick overview of their recent ratings, highlighting the changing sentiments over the past 30 days and comparing them to the preceding months.

Providing deeper insights, analysts have established 12-month price targets, indicating an average target of $387.5, along with a high estimate of $450.00 and a low estimate of $299.00. Witnessing a positive shift, the current average has risen by 10.89% from the previous average price target of $349.43.

Investigating Analyst Ratings: An Elaborate Study

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: 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: Analyzing trends, analysts offer qualitative evaluations, ranging from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Lithia Motors compared to the broader market.
• Price Targets: Analysts predict movements in price targets, offering estimates for Lithia Motors's future value. Examining the current and prior targets offers insights into analysts' evolving expectations.

Navigating through these analyst evaluations alongside other financial indicators can contribute to a holistic understanding of Lithia Motors's market standing. Stay informed and make data-driven 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 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 to around 20% with the 2024 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.

Financial Milestones: Lithia Motors's Journey

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Revenue Growth: Over the 3 months period, Lithia Motors showcased positive performance, achieving a revenue growth rate of 11.41% as of 30 September, 2024. This reflects a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Net Margin: Lithia Motors's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 2.27%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Lithia Motors's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 3.22%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): Lithia Motors's ROA excels beyond industry benchmarks, reaching 0.9%. This signifies efficient management of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 2.13, Lithia Motors adopts a prudent financial strategy, indicating a balanced approach to debt management.

The Significance of Analyst Ratings Explained

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.

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.