Bank of America has revised its price target for Penske Automotive (PAG, Financial) down to $190 from the previous $205 while maintaining a Buy rating on the stock. The adjustment comes as first-quarter production volumes and sales for the company have exceeded initial expectations, hinting at stronger-than-anticipated results for Q1.
Despite this positive outlook, significant uncertainty looms over tariff discussions, which remain unresolved. This uncertainty has led analysts to reduce valuation multiples across the board by as much as 1.0x. The ongoing trade tensions suggest a cautious approach, potentially leading companies to withdraw or suspend their future guidance.
