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Research Alert: CFRA Maintains Hold Opinion On Shares Of Group 1 Automotive, Inc.
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Research Alert: CFRA Maintains Hold Opinion On Shares Of Group 1 Automotive, Inc.
Jul 25, 2025 10:47 PM

12:35 AM EDT, 07/25/2025 (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 keep target price at $415, based on a 2026 P/E of 9.3x, a justified premium to historical averages. We raise our adj. EPS estimates to $42.50 (from $41.25) for 2025 and to $44.60 (from $43.75) for 2026. GPI posted Q2 2025 adjusted EPS of $11.52 vs. $9.80 in Q2 2024 (+18% Y/Y), well ahead of consensus' $10.47. Revenue rose 21% Y/Y to $5.70B ($40M ahead of consensus) and gross margin rose 10 bps to 16.4% (80 bps above consensus). Improved gross margin resulted from strength in the Parts & Service segment (+90 bps). We viewed the release as solid, but valuation and GPI's U.K. exposure keep us on the sidelines, preferring other names in the auto retail space, the only automotive sub-industry we currently recommend with a positive outlook. However, GPI possesses one of the strongest earnings track records in U.S. auto retail, having beaten consensus in 29 of the past 32 quarters, and it has been one of the more aggressive U.S. auto dealers at buying back stock over the last few years, helping boost EPS growth.

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