Bank of America (BofA) has adjusted its target price for Group 1 Automotive (GPI, Financial), reducing it from $550 to $510 while maintaining a Buy rating on the company's shares. This revision comes as the first quarter showed stronger production volumes and sales than initially anticipated, suggesting that the Q1 results might surpass earlier expectations.
Despite these positive indicators, the forecast for Group 1 Automotive is clouded by significant uncertainties surrounding tariffs. The ongoing discussions regarding tariffs and their potential fallout remain unresolved, contributing to a volatile outlook. This uncertainty has led BofA's analyst to lower valuation multiples by up to 1.0x across their coverage, reflecting a belief that companies may be compelled to retract or delay financial guidance.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Group 1 Automotive Inc (GPI, Financial) is $484.50 with a high estimate of $550.00 and a low estimate of $385.00. The average target implies an upside of 25.43% from the current price of $386.26. More detailed estimate data can be found on the Group 1 Automotive Inc (GPI) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, Group 1 Automotive Inc's (GPI, Financial) average brokerage recommendation is currently 1.9, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Group 1 Automotive Inc (GPI, Financial) in one year is $381.47, suggesting a downside of 1.24% from the current price of $386.26. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Group 1 Automotive Inc (GPI) Summary page.
