
Lithia Motors (LAD) Stock Forecast & Price Target
Lithia Motors (LAD) Analyst Ratings
Bulls say
Lithia Motors demonstrated a positive performance in 3Q24, with same-store new unit sales increasing by 2% and a significant rise in service and parts gross margin dollars by 21%, driven by the addition of its U.K. operations. The company is expected to see continued growth, with estimates for 4Q24 EBITDA growth at 8.4% and accelerating to 16.6% in 1Q25, reflecting strong operational momentum and a strategic focus on digital initiatives and aftersales. With annual revenue projected at $36.2 billion for 2024 and potential growth to over $50 billion in the coming years, Lithia Motors' trajectory appears favorable as it expands its presence in both US and international markets.
Bears say
Lithia Motors's financial outlook is clouded by a noticeable decline in gross profit per unit (GPU), with new GPUs dropping 26.1% year-over-year and falling to $3,226, alongside a significant reduction in same-store used unit sales, which decreased by 9.6%. The company is experiencing challenges with new unit volumes, as evidenced by a 15% year-over-year decline in units per average store following the Pendragon acquisition, which is contributing to weaker-than-expected sales performance. Additionally, concerns about the company’s selling, general, and administrative expenses (SGA) discipline further dampen investor confidence, given the structural shifts in its business model, including its expansion into captive auto lending.
This aggregate rating is based on analysts' research of Lithia Motors and is not a guaranteed prediction by Public.com or investment advice.
Lithia Motors (LAD) Analyst Forecast & Price Prediction
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