01:05 PM 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 $120 from $140 on a 2026 P/E of 8.5x, a discount to PAG's five-year average forward P/E of 9.4x. We lower our adjusted EPS estimates to $14.00 from $14.15 for 2025 and to $14.20 from $14.50 for 2026. PAG posted Q1 adjusted EPS of $3.39 vs. $3.21 (+6%), ahead of the $3.28 consensus. Revenue rose 2% to $7.60B ($120M below consensus) and gross margin was flat at 16.7% (40 bps above consensus). The top-line decline was driven by lower volume, as the company's total vehicles sold fell 5.6% to 119,774 units. Gross margin was lower for the New Vehicle segment (-50 bps), partially offset by stronger Parts & Service (+120 bps) and Used Vehicle segment margins (+10 bps). Our Sell opinion is based on our view that PAG shares trade at what we consider to be an unjustified premium relative to higher-quality auto dealership peers. PAG also has greater exposure to luxury vehicle brands (72% of new vehicle sales revenue in 2024), which are more out-of-favor right now due to economic conditions.