Lithia Motors (NYSE:LAD) Stock Price Expected to Rise, Wells Fargo & Company Analyst Says

Key Points

• Wells Fargo raised its price target on Lithia Motors from $293 to $305 while maintaining an "equal weight" rating, implying about a 4.8% upside from the prior close.
• Lithia's Q1 results showed an EPS beat ($7.34 vs. $7.06), stronger aftersales/used-vehicle margins, a ~$259M buyback and a dividend raise to $0.57, but revenue missed estimates ($9.27B vs. ~$9.81B) and EPS dipped year‑over‑year.
• Analyst sentiment is mixed — six Buys and six Holds yield a MarketBeat consensus of "Moderate Buy" with a $362.33 target, though several firms have trimmed targets amid margin and new‑vehicle demand concerns.

Lithia Motors (NYSE:LAD - Get Free Report) had its price target increased by investment analysts at Wells Fargo & Company from $293.00 to $305.00 in a note issued to investors on Thursday,Benzinga reports. The brokerage currently has an "equal weight" rating on the stock. Wells Fargo & Company's price target suggests a potential upside of 4.81% from the stock's previous close.

A number of other equities analysts have also recently issued reports on the stock. Weiss Ratings reissued a "hold (c+)" rating on shares of Lithia Motors in a report on Thursday, January 22nd. Citigroup lowered their target price on Lithia Motors from $366.00 to $326.00 and set a "buy" rating for the company in a report on Wednesday, April 8th. Barclays dropped their price target on Lithia Motors from $380.00 to $370.00 and set an "overweight" rating on the stock in a research report on Tuesday, April 7th. Wall Street Zen lowered Lithia Motors from a "hold" rating to a "sell" rating in a research report on Saturday, February 28th. Finally, Bank of America lowered their price objective on Lithia Motors from $335.00 to $320.00 in a research note on Monday, April 13th. Six research analysts have rated the stock with a Buy rating and six have given a Hold rating to the stock. According to MarketBeat.com, Lithia Motors has a consensus rating of "Moderate Buy" and a consensus target price of $362.33.

Lithia Motors Stock Performance

NYSE:LAD opened at $291.00 on Thursday. The company has a market cap of $6.80 billion, a PE ratio of 9.08, a P/E/G ratio of 0.66 and a beta of 1.22. The business's 50 day moving average is $267.30 and its two-hundred day moving average is $302.76. The company has a quick ratio of 0.26, a current ratio of 1.17 and a debt-to-equity ratio of 1.46. Lithia Motors has a 52 week low of $239.78 and a 52 week high of $360.55.

Lithia Motors (NYSE:LAD - Get Free Report) last posted its quarterly earnings results on Wednesday, April 29th. The company reported $7.34 earnings per share (EPS) for the quarter, beating the consensus estimate of $7.06 by $0.28. Lithia Motors had a return on equity of 12.76% and a net margin of 2.18%.The business had revenue of $9.27 billion for the quarter, compared to analyst estimates of $9.81 billion. During the same period in the prior year, the company posted $7.66 EPS. The business's revenue was up 1.0% compared to the same quarter last year. On average, analysts predict that Lithia Motors will post 34.68 EPS for the current year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in LAD. CoreCap Advisors LLC acquired a new stake in Lithia Motors in the third quarter worth approximately $26,000. Eastern Bank acquired a new position in shares of Lithia Motors during the 3rd quarter valued at $31,000. Root Financial Partners LLC acquired a new position in shares of Lithia Motors during the 3rd quarter valued at $31,000. Clearstead Advisors LLC raised its stake in shares of Lithia Motors by 111.4% in the 4th quarter. Clearstead Advisors LLC now owns 93 shares of the company's stock worth $31,000 after buying an additional 49 shares in the last quarter. Finally, Parkside Financial Bank & Trust lifted its holdings in shares of Lithia Motors by 75.0% in the third quarter. Parkside Financial Bank & Trust now owns 105 shares of the company's stock valued at $33,000 after buying an additional 45 shares during the period.

Lithia Motors News Roundup

Here are the key news stories impacting Lithia Motors this week:

• Positive Sentiment: Q1 EPS beat consensus ($7.34 vs. $7.06) and management discussed results on the earnings call, which reassured investors on near-term profitability. Lithia Motors, Inc. NYSE: LAD Q1 2026 Earnings Call Transcript
• Positive Sentiment: Aftersales and used-vehicle margins improved materially (aftersales gross margin expanded; used retail GPU up sequentially), and Driveway Finance posted record originations ($840M) with high-quality credits — all supporting higher profitability. Management also repurchased ~$259M (≈4% of shares) in the quarter. Lithia & Driveway (LAD) Reports First Quarter Results
• Positive Sentiment: Board raised the quarterly dividend to $0.57 (up from $0.55), signaling confidence in cash flow and returning capital to shareholders; ex-dividend date set for May 8. (Company announcement)
• Neutral Sentiment: Revenue came in below some Street estimates ($9.27B reported vs. ~$9.81B expected) and grew only ~1% year-over-year, suggesting topline weakness even as margins improved. Lithia Q1 Earnings Top Estimates on Higher Aftersales Margin
• Neutral Sentiment: Management made supplemental disclosures via slide deck / earnings presentation — useful for investors digging into segment-level trends and finance metrics. Lithia Motors, Inc. 2026 Q1 - Results - Earnings Call Presentation
• Negative Sentiment: Some sell-side analysts had already trimmed margin expectations ahead of the print, reflecting concerns about rising costs and a tougher mix; that could limit upside if management’s outlook is cautious. Lithia Motors earnings loom as analysts trim margin expectations
• Negative Sentiment: EPS declined slightly year-over-year (from $7.66 to $7.34) and new-vehicle demand showed softness — factors investors may watch for signs of a longer-term slowdown. Lithia Motors (LAD) Q1 Earnings Beat Estimates

Lithia Motors Company Profile

Lithia Motors, Inc is an American automotive retailer headquartered in Medford, Oregon. Founded in 1946 as a small auto body and glass shop, the company has grown through organic expansion and strategic acquisitions to become one of the largest automotive retail networks in North America. Lithia operates dealerships across the United States and Canada, offering a broad portfolio of new and pre-owned vehicles from more than 40 different manufacturers.

The company's core business activities include vehicle sales, financing, insurance, parts and service.

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