Breaking Down Lithia Motors: 4 Analysts Share Their Views
In the latest quarter, 4 analysts provided ratings for Lithia Motors (NYSE:LAD), showcasing a mix of bullish and bearish perspectives.
The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 1 | 1 | 2 | 0 | 0 |
| Last 30D | 0 | 0 | 1 | 0 | 0 |
| 1M Ago | 0 | 1 | 1 | 0 | 0 |
| 2M Ago | 1 | 0 | 0 | 0 | 0 |
| 3M Ago | 0 | 0 | 0 | 0 | 0 |
Analysts' evaluations of 12-month price targets offer additional insights, showcasing an average target of $379.0, with a high estimate of $500.00 and a low estimate of $317.00. This current average reflects an increase of 4.99% from the previous average price target of $361.00.
Diving into Analyst Ratings: An In-Depth Exploration
The perception of Lithia Motors by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Colin Langan | Wells Fargo | Lowers | Equal-Weight | $317.00 | $364.00 |
| Rajat Gupta | JP Morgan | Lowers | Overweight | $335.00 | $345.00 |
| Colin Langan | Wells Fargo | Raises | Equal-Weight | $364.00 | $305.00 |
| John Murphy | B of A Securities | Raises | Buy | $500.00 | $430.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Lithia Motors. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Lithia Motors compared to the broader market.
- Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Lithia Motors's stock. This comparison reveals trends in analysts' expectations over time.
Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of Lithia Motors's market position. Stay informed and make well-informed decisions with our Ratings Table.
Stay up to date on Lithia Motors analyst ratings.
All You Need to Know About Lithia Motors
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.
Lithia Motors: Financial Performance Dissected
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Revenue Growth: Lithia Motors displayed positive results in 3M. As of 31 March, 2025, the company achieved a solid revenue growth rate of approximately 7.2%. This indicates a notable increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in 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): Lithia Motors's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.12% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): Lithia Motors's ROA stands out, surpassing industry averages. With an impressive ROA of 0.9%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 2.06.
The Core of Analyst Ratings: What Every Investor Should Know
Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
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This article was generated by Benzinga's automated content engine and reviewed by an editor.