Update shared on 29 Oct 2025
Fair value Increased 0.97%Narrative Update: Analyst Price Target Revision for AutoNation
Analysts have raised their price target for AutoNation by $2.20 to $228.30. This update is based on improved revenue growth expectations, a modest increase in profit margin forecasts, and a slightly lower projected future price-to-earnings ratio.
What's in the News
- From July 1, 2025 to October 21, 2025, AutoNation repurchased 1,234,984 shares for $269.24 million, completing buybacks totaling 170,630,933 shares for $10,023.48 million. (Buyback Tranche Update)
- The company is actively seeking merger and acquisition opportunities to expand in its existing markets and has spent approximately $350 million on transactions in Denver and Chicago so far this year. (Seeking Acquisitions/Investments)
- AutoNation celebrated the grand re-opening of its Porsche Newport Beach retail and service center. The completely redeveloped 60,000 sq. ft. facility features new amenities, luxury customer experiences, and community events. (Business Expansions)
- The company acquired two luxury dealerships in Chicago, representing about $325 million in annual revenue and increasing its footprint to 10 locations in the area. (Business Expansions)
Valuation Changes
- Fair Value Estimate has risen slightly to $228.30 from $226.10.
- The Discount Rate increased to 11.88% from 11.19%.
- Revenue Growth expectation improved to 3.15% from 2.95%.
- Net Profit Margin projection has modestly increased to 2.99% from 2.94%.
- The estimate for the future P/E ratio has declined to 10.11x from 11.31x.
Disclaimer
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