Update: Goldman Sachs Raising Price Target On Penske Automotive Group (PAG)

Goldman Sachs has a Neutral rating and a $23 price target on shares of Penske Automotive Group PAG. In a note to investors, Goldman Sachs writes, "PAG reported 1Q11 EPS of $0.39 vs. our estimate of $0.37 and the Street estimate of $0.31. We are adjusting our 2011/2012/2013 estimates to $1.54/$1.83/$2.21 from $1.45/$1.79/$2.15, previously. These changes reflect: (1) impact of 1Q beat; (2) slightly lower new vehicle sales which are more than offset by stronger used vehicle SSS on the back of a higher used-to-new ratio; (3) the impact of dealership acquisitions in Q1; (4) lower floor plan interest expense vs. our previous forecast; and (5) modestly stronger EUR and GBP assumptions. Our 6-month price target rises to $23 from $21." Shares of PAG gained $2.52 yesterday to close at $23.06, a gain of 12.27%.