Citi has started its coverage of AutoNation (AN, Financial) by assigning a Buy rating and setting a price target of $208. This move comes as Citi analysts begin evaluating the broader group of auto manufacturers and auto parts sectors. They have pointed out that ongoing tariff disputes are likely to cause fluctuations in U.S. light vehicle sales until a resolution is reached.
Despite these uncertainties, recent sales data has been positive. March saw unexpectedly strong vehicle sales, and this positive trend appears to have carried over into April, suggesting robust showroom activity. Citi analysts anticipate that once the tariff-related uncertainties clear, demographic trends in the U.S. will drive annual demand for vehicles to between 16 million and 18 million units, about 10% higher than projections for 2024. This anticipated demand surge will likely require restocking of inventories, providing a boost to vehicle production.
Citi highlights these developments as favorable for the financial health of the auto sector. The firm also believes that car dealers are strategically well-positioned to navigate the prevailing market uncertainties, making them a potentially strong investment opportunity amidst the current industry dynamics.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for AutoNation Inc (AN, Financial) is $201.67 with a high estimate of $240.00 and a low estimate of $175.00. The average target implies an upside of 19.29% from the current price of $169.05. More detailed estimate data can be found on the AutoNation Inc (AN) Forecast page.
Based on the consensus recommendation from 13 brokerage firms, AutoNation Inc's (AN, Financial) average brokerage recommendation is currently 2.2, 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 AutoNation Inc (AN, Financial) in one year is $186.85, suggesting a upside of 10.53% from the current price of $169.05. 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 AutoNation Inc (AN) Summary page.
