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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.
Oct 28, 2025 10:26 AM

01:00 PM EDT, 10/28/2025 (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 raise our 12-month target by $5 to $420, based on a 2026 P/E of 9.5x, a justified premium to historical averages. We lower our adjusted EPS estimates to $42.20 from $42.50 for 2025, to $44.40 from $44.60 for 2026, and introduce 2027 at $48.40. After an uncharacteristically weak earnings release, we are maintaining our view on shares of GPI. Heading into the release, GPI's quarterly earnings had beat more than 90% of the time over the past eight years, but a sizeable Q3 miss on disappointing margins and heightened concerns regarding its underperforming U.K. dealerships cause us to remain at a Hold despite industry fundamentals we view as favorable, driven by lower interest rates and oil prices. In short, we prefer other auto dealerships at current levels and think GPI's U.K. division (26% of total revenue and 22% of total gross margin in Q3) could continue to act as a drag on results over the next few quarters. However, recent share repurchases and accretive bolt-in acquisitions should help support EPS growth.

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