08:10 AM EDT, 08/01/2025 (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 increase our 12-month price target by $10 to $130, based on a 2026 P/E of 9.0x - a justified discount to the stock's five-year average forward P/E of 9.3x. We raise our adjusted EPS estimates to $14.20 (from $14.00) for 2025 and to $14.45 (from $14.20) for 2026. PAG posted Q2 adjusted EPS of $3.78 vs. $3.61 in Q2 2024 (+5%), well ahead of the $3.56 consensus. Revenue fell 0.4% to $7.66B ($60M below consensus) and gross margin expanded 50 bps to 16.9% (80 bps above consensus). The top-line decline was due to lower volume, as the company's total vehicles sold declined by 11.1% to 112,624 units. We maintain a Sell opinion on the shares due to valuation and PAG's below-average growth relative to peers. PAG's Q2 results showed a slight decline in revenue and 5% EPS growth on a Y/Y basis, placing it well below the growth rates of many of its auto dealership peers. While we are positive on the space, we believe PAG's inferior growth metrics and full valuation justify a Sell opinion.