Here's What Analysts Are Forecasting For Penske Automotive Group, Inc. (NYSE:PAG) After Its Annual Results

Investors in Penske Automotive Group, Inc. (NYSE:PAG) had a good week, as its shares rose 5.4% to close at US$174 following the release of its annual results. It was a credible result overall, with revenues of US$30b and statutory earnings per share of US$13.74 both in line with analyst estimates, showing that Penske Automotive Group is executing in line with expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for Penske Automotive Group

Taking into account the latest results, the consensus forecast from Penske Automotive Group's seven analysts is for revenues of US$31.6b in 2025. This reflects a modest 3.9% improvement in revenue compared to the last 12 months. Statutory per-share earnings are expected to be US$13.67, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$31.3b and earnings per share (EPS) of US$13.93 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$172. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Penske Automotive Group, with the most bullish analyst valuing it at US$195 and the most bearish at US$152 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Penske Automotive Group's past performance and to peers in the same industry. We would highlight that Penske Automotive Group's revenue growth is expected to slow, with the forecast 3.9% annualised growth rate until the end of 2025 being well below the historical 8.0% p.a. growth over the last five years. Compare this to the 150 other companies in this industry with analyst coverage, which are forecast to grow their revenue at 4.5% per year. Factoring in the forecast slowdown in growth, it looks like Penske Automotive Group is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no real changes to revenue forecasts, with the business still expected to grow in line with the overall industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Penske Automotive Group analysts - going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified 2 warning signs for Penske Automotive Group (1 makes us a bit uncomfortable) you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.