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AN: Expanded Share Repurchases Will Likely Drive Market Outperformance

Update shared on 12 Nov 2025

Fair value Increased 2.06%
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AnalystConsensusTarget's Fair Value
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1Y
16.6%
7D
0.7%

Analysts have raised their price target for AutoNation from $228.30 to $233.00. They cite slightly improved revenue growth expectations, even though there is a marginal decrease in projected profit margins.

What's in the News

  • AutoNation increased its share repurchase program by $1 billion, bringing total authorization to $11.5 billion (company announcement).
  • From July to October 2025, AutoNation repurchased 1,234,984 shares for $269.24 million. The company has completed the buyback of over 170 million shares since 2007 (company update).
  • The company is actively seeking mergers and acquisitions and has spent about $350 million on transactions in Denver and Chicago so far this year (Q3 2025 conference call).
  • AutoNation opened a newly redeveloped Porsche Newport Beach retail and service center, which offers concierge service, premium amenities, and community events (company press release).
  • In September 2025, AutoNation acquired two luxury dealerships in Chicago. These dealerships represent $325 million in annual revenue and expand the company's presence to 10 locations in the area (company press release).

Valuation Changes

  • Consensus Analyst Price Target has risen slightly from $228.30 to $233.00 per share.
  • Discount Rate increased marginally from 11.88% to 11.90%.
  • Revenue Growth expectation edged up from 3.15% to 3.22%.
  • Net Profit Margin slipped modestly from 2.99% to 2.98%.
  • Future P/E ratio increased from 10.11x to 10.36x.

Disclaimer

AnalystConsensusTarget is a tool utilizing a Large Language Model (LLM) that ingests data on consensus price targets, forecasted revenue and earnings figures, as well as the transcripts of earnings calls to produce qualitative analysis. The narratives produced by AnalystConsensusTarget are general in nature and are based solely on analyst data and publicly-available material published by the respective companies. These scenarios are not indicative of the company's future performance and are exploratory in nature. Simply Wall St has no position in the company(s) mentioned. Simply Wall St may provide the securities issuer or related entities with website advertising services for a fee, on an arm's length basis. These relationships have no impact on the way we conduct our business, the content we host, or how our content is served to users. The price targets and estimates used are consensus data, and do not constitute a recommendation to buy or sell any stock, and they do not take account of your objectives, or your financial situation. Note that AnalystConsensusTarget's analysis may not factor in the latest price-sensitive company announcements or qualitative material.