Analysts have slightly raised their price target for Lithia Motors from $381.93 to $387.71, citing updated expectations for profit margins and valuation multiples.
What's in the News
- Lithia Motors completed a significant share repurchase, buying back 1,377,225 shares from July to October 2025. This represents 5.36% of shares for $428.11 million as part of its ongoing buyback plan. (Buyback Tranche Update)
- The company increased its equity buyback authorization by $750 million on August 26, 2025, bringing total plan authorization to $3,104.34 million. (Buyback: Change in Plan Terms)
- Lithia & Driveway achieved its first appearance on the Fortune Global 500 list at position #434 and maintained its number one spot in the Automotive Retail category on the US Fortune 500. This reflects its industry leadership and business expansion. (Business Expansions)
- The company expanded its dealership network with the acquisition of Palm Beach Acura, West Palm Beach Hyundai, and West Palm Beach Genesis, strengthening its presence and brand mix in the Southeast region. (Business Expansions)
Valuation Changes
- Fair Value Estimate has risen slightly, increasing from $381.93 to $387.71 per share.
- Discount Rate remains unchanged at 12.32%.
- Revenue Growth projection has fallen notably, decreasing from 5.32% to 4.19%.
- Net Profit Margin is forecast to improve modestly, rising from 2.60% to 2.75%.
- Future P/E Ratio has declined, moving from 10.55x to 9.85x. This indicates slightly lower valuation multiples expected ahead.
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