Citi has started coverage of Asbury Automotive Group (ABG, Financial) with a Neutral rating and has set a price target of $236. According to Citi's analyst, Michael Ward, the ongoing trade tensions are expected to create fluctuations in U.S. light vehicle sales until the disputes are resolved. However, recent sales have outperformed expectations, with strong numbers in March carrying over into April.
Looking ahead, Citi forecasts that once trade uncertainties are resolved, demographic trends in the U.S. will likely drive demand for 16 to 18 million car units annually. This projection represents an increase of about 10% over the anticipated 2024 sales figures and suggests that inventory will need to be replenished, offering a boost to automotive production.
The firm points out that these trends could positively impact the financial performance of the auto industry. Additionally, Citi believes that auto dealers, like Asbury Automotive (ABG, Financial), are well-positioned to manage the unpredictability caused by the trade situation.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Asbury Automotive Group Inc (ABG, Financial) is $268.00 with a high estimate of $335.00 and a low estimate of $200.00. The average target implies an upside of 20.18% from the current price of $223.00. More detailed estimate data can be found on the Asbury Automotive Group Inc (ABG) Forecast page.
Based on the consensus recommendation from 7 brokerage firms, Asbury Automotive Group Inc's (ABG, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" 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 Asbury Automotive Group Inc (ABG, Financial) in one year is $286.95, suggesting a upside of 28.68% from the current price of $223. 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 Asbury Automotive Group Inc (ABG) Summary page.
