04:15 AM EDT, 05/01/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month target to $225 from $300, based on a 2026 P/E of 8.0x, in line with ABG's five-year average forward P/E. We lower our adjusted EPS estimates to $27.25 from $29.10 for 2025 and to $28.00 from $31.35 for 2026. ABG posted Q1 adjusted EPS of $6.82 vs. $7.21 (-5%), ahead of the $6.66 consensus. Revenue fell 1% to $4.15B ($200M below consensus) and gross margin contracted 40 bps to 17.5% (60 bps above consensus). The decline in gross margin was driven by the New (-120 bps) and Used Vehicle segments (-30 bps), partially offset by stronger Parts & Service margin (+170 bps). Notably, ABG's acquisition of Herb Chambers Automotive Group is expected to close by the end of June (~$2.9B in annual revenue). In short, while we think tariff-related fears are likely to drive an uptick in near-term sales, we prefer other names in the auto dealership space with stronger records of operational execution, noting that ABG's earnings have fallen short of consensus in five of the past seven quarters.