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Research Alert: CFRA Raises Opinion On Asbury Automotive Group Inc. Shares To Buy From Hold
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Research Alert: CFRA Raises Opinion On Asbury Automotive Group Inc. Shares To Buy From Hold
Oct 28, 2025 10:47 AM

01:25 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 increase our 12-month price target by $55 to $290, based on a 2026 P/E of 10.0x, a justified premium to ABG's 10-year mean forward P/E of 8.7x. We raise our adjusted EPS estimates to $28.35 from $27.95 for 2025 and to $29.10 from $28.80 for 2026, and initiate 2027's at $32.15. Following ABG's better-than-expected Q3 earnings, we are raising our rating on the shares to Buy from Hold. ABG's Q3 earnings release was one of the strongest we have seen from the auto dealership space so far this quarter. We see a combination of positive factors continuing to act as a tailwind for the story, including ABG's industry-leading Parts & Service gross margins (59.0% in Q3), ongoing share repurchases ($50M in Q3), EPS growth through accretive acquisitions (e.g., the $1.45B Herb Chambers Automotive Group purchase in July), and its favorable geographic footprint largely based throughout the southeastern U.S. In our view, these positives will help drive the shares' outperformance in the coming months.

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