Asbury Automotive Group (NYSE:ABG) Price Target Raised to $204.00

Key Points

• UBS raised Asbury Automotive Group’s price target to $204 from $193 while maintaining a neutral rating, implying about 5.9% upside from the prior close. Other analysts were more optimistic, including Craig Hallum and Seaport Research Partners, which upgraded the stock to “buy.”
• Asbury’s third-quarter results missed expectations: adjusted EPS was $6.16 versus a $6.42 consensus, while revenue fell 8.1% year over year to $4.41 billion, below the $4.51 billion estimate.
• Analyst sentiment remains mixed, with three buy, five hold and two sell ratings, producing a consensus “Hold” rating and a $222.12 average price target. Investors continue to weigh the stock’s low valuation against leverage concerns and weaker earnings.

Asbury Automotive Group (NYSE:ABG - Get Free Report) had its target price lifted by investment analysts at UBS Group from $193.00 to $204.00 in a research note issued to investors on Wednesday, Benzinga reports. The firm presently has a "neutral" rating on the stock. UBS Group's price target would indicate a potential upside of 5.88% from the company's previous close.

A number of other brokerages have also recently commented on ABG. Craig Hallum upgraded shares of Asbury Automotive Group from a "hold" rating to a "buy" rating and set a $250.00 price target on the stock in a research report on Tuesday. Seaport Research Partners raised shares of Asbury Automotive Group from a "neutral" rating to a "buy" rating and set a $300.00 target price on the stock in a report on Tuesday, September 8th. JPMorgan Chase & Co. reduced their target price on shares of Asbury Automotive Group from $190.00 to $185.00 and set an "underweight" rating on the stock in a report on Tuesday, October 6th. Zacks Research downgraded shares of Asbury Automotive Group from a "hold" rating to a "strong sell" rating in a research note on Friday, October 16th. Finally, Morgan Stanley cut their price target on shares of Asbury Automotive Group from $230.00 to $184.00 and set an "equal weight" rating for the company in a research report on Monday, October 5th. Three equities research analysts have rated the stock with a Buy rating, five have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat, Asbury Automotive Group presently has an average rating of "Hold" and a consensus price target of $222.12.

Asbury Automotive Group Price Performance

Shares of ABG traded down $2.32 during trading hours on Wednesday, reaching $192.67. 536,524 shares of the company's stock traded hands, compared to its average volume of 256,160. Asbury Automotive Group has a 12 month low of $160.30 and a 12 month high of $258.74. The company has a current ratio of 0.91, a quick ratio of 0.29 and a debt-to-equity ratio of 0.77. The stock has a market cap of $3.46 billion, a PE ratio of 7.21, a price-to-earnings-growth ratio of 0.97 and a beta of 0.78. The firm's 50 day simple moving average is $189.83 and its 200-day simple moving average is $205.24.

Asbury Automotive Group (NYSE:ABG - Get Free Report) last posted its quarterly earnings data on Tuesday, October 27th. The company reported $6.16 earnings per share for the quarter, missing the consensus estimate of $6.42 by ($0.26). The company had revenue of $4.41 billion during the quarter, compared to the consensus estimate of $4.51 billion. Asbury Automotive Group had a return on equity of 12.72% and a net margin of 2.83%. The firm's revenue for the quarter was down 8.1% on a year-over-year basis. During the same quarter last year, the company posted $7.17 earnings per share. Equities analysts expect that Asbury Automotive Group will post 25.64 EPS for the current year.

Institutional Investors Weigh In On Asbury Automotive Group

Several institutional investors and hedge funds have recently bought and sold shares of the business. BlackRock Inc. purchased a new position in shares of Asbury Automotive Group during the second quarter valued at approximately $593,499,000. Dimensional Fund Advisors LP boosted its holdings in Asbury Automotive Group by 3.0% in the first quarter. Dimensional Fund Advisors LP now owns 1,156,426 shares of the company's stock valued at $225,977,000 after acquiring an additional 34,104 shares in the last quarter. Cooke & Bieler LP purchased a new position in Asbury Automotive Group during the 3rd quarter valued at $65,167,000. Madison Asset Management LLC purchased a new position in Asbury Automotive Group during the 2nd quarter valued at $60,592,000. Finally, Magnolia Group LLC increased its position in Asbury Automotive Group by 3.1% during the 1st quarter. Magnolia Group LLC now owns 288,004 shares of the company's stock valued at $56,279,000 after purchasing an additional 8,731 shares during the period.

Asbury Automotive Group News Summary

Here are the key news stories impacting Asbury Automotive Group this week:

• Positive Sentiment: Craig Hallum upgraded ABG from “hold” to “buy” and set a $250 price target, implying substantial upside. The firm’s view suggests the recent weakness may have created an attractive entry point. Craig Hallum upgrade
• Positive Sentiment: UBS raised its price target to $204 from $193 while maintaining a neutral rating. The increase indicates improved valuation expectations, although UBS remains cautious on the company’s near-term outlook. UBS price target increase
• Neutral Sentiment: Some coverage characterized ABG as potentially inexpensive following the target-price increases, with a low earnings multiple supporting the value argument. However, investors remain focused on leverage and the durability of earnings. ABG valuation analysis
• Negative Sentiment: Asbury reported third-quarter earnings of $6.16 per share, below the $6.42–$6.46 consensus range, while revenue of $4.41 billion missed the $4.51 billion estimate. EPS fell from $7.17 a year earlier, and revenue declined 8.1% year over year. Asbury Q3 earnings miss
• Negative Sentiment: Investor concerns about leverage remain a key overhang. The earnings discussion highlighted balance-sheet risk despite the company’s profitability, making the earnings miss more significant for shareholders. ABG leverage risk analysis

Asbury Automotive Group Company Profile

Asbury Automotive Group, Inc is a U.S.-based automotive retailer that operates franchised and independent dealerships. Its dealerships sell new and used vehicles from a range of domestic, import and luxury automobile brands, and provide related services throughout the vehicle ownership cycle.

The company's operations include automotive repair and maintenance, parts and accessories, collision repair, vehicle financing and insurance products, and other dealership services. Asbury also supports vehicle sales and service through digital retailing and online customer tools.

Founded in 1995, Asbury has expanded through acquisitions and serves customers across multiple markets in the United States.

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