11:25 AM EDT, 07/29/2025 (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 target by $5 to $400, based on a 2026 P/E of 10.0x, a justified discount to LAD's 10-year forward P/E of 10.8x. We raise our 2025 adjusted EPS estimate to $35.80 from $34.60 and 2026's to $40.10 from $39.65. LAD posted Q2 adjusted EPS of $10.24 vs. $7.87 (+30%), ahead of the $9.81 consensus. Net sales rose 3.8% to $9.58B ($20M ahead of consensus) and gross margin expanded 10 bps to 15.5% (40 bps above consensus). Despite a 5% sell-off in the shares, LAD remains one of our top picks in the auto retail space, as the company continues to execute and remains well positioned for future growth, in our view. We see LAD continuing to growth EPS through acquisitions and buybacks. Auto Retail remains the only automotive sub-industry in which we currently have a positive outlook, with the thesis that margin improvement from their resilient and high-margin Parts & Service operations are likely to drive near-term earnings growth, before interest rate cuts provide an additional boost.