What 7 Analyst Ratings Have To Say About Lithia Motors

In the latest quarter, 7 analysts provided ratings for Lithia Motors LAD, showcasing a mix of bullish and bearish perspectives.

The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $361.71, a high estimate of $500.00, and a low estimate of $305.00. A 8.66% drop is evident in the current average compared to the previous average price target of $396.00.

Interpreting Analyst Ratings: A Closer Look

An in-depth analysis of recent analyst actions unveils how financial experts perceive Lithia Motors. The following summary outlines 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: 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 gauge the dynamics of price targets, providing estimates for the future value of Lithia Motors's stock. This comparison reveals trends in analysts' expectations over time.

Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Lithia Motors's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.

Stay up to date on Lithia Motors analyst ratings.

Discovering Lithia Motors: A Closer Look

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 2024 was $36.2 billion and we see over $50 billion possible in a few years. The US was 78% of 2024 revenue and the UK second at 19%, due to the 2024 Pendragon acquisition. In 2024, new vehicle 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.

Breaking Down Lithia Motors's Financial Performance

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 3M period, Lithia Motors showcased positive performance, achieving a revenue growth rate of 7.2% as of 31 March, 2025. This reflects 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: Lithia Motors's net margin is impressive, surpassing industry averages. With a net margin of 2.28%, 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 3.12%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): Lithia Motors's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.9%, the company showcases efficient use of assets and strong financial health.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 2.06.

The Basics of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

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.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.