---
title: "BUZZ-US auto dealers' stocks climb as Stephens initiates coverage"
description: "Shares of U.S. auto dealers rose following Stephens' initiation of coverage on the \"Public 6\" franchised dealerships. Lithia Motors increased by 3.6%, AutoNation by 1.8%, Group 1 Automotive by 2%, Pen"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/214210537.md"
published_at: "2024-09-12T18:31:39.000Z"
---

# BUZZ-US auto dealers' stocks climb as Stephens initiates coverage

> Shares of U.S. auto dealers rose following Stephens' initiation of coverage on the "Public 6" franchised dealerships. Lithia Motors increased by 3.6%, AutoNation by 1.8%, Group 1 Automotive by 2%, Penske Automotive by 1.1%, and Sonic Automotive by 2.5%. The brokerage views these companies as generating diverse cash flows and being shareholder-friendly, despite ongoing earnings normalization post-COVID. The S&P 500 automotive retail sub-index is up 16.5% year-to-date.

Shares of Lithia Motors (LAD.N) rise 3.6% to $271.09, AutoNation (AN.N) rise 1.8% to $161.57, Group 1 Automotive (GPI.N) rise ~2% to $346.80, Penske Automotive Group (PAG.N) rise 1.1% to $150.09 and Sonic Automotive (SAH.N) rise 2.5% to $54.90

Stephens initiates coverage for the “Public 6” franchised U.S. auto dealerships

Company Brokerage Brokerage LSEG data

rating PT median PT

Asbury equal-wei $216 $240

Automotive ght

Group (ABG.N)

AutoNation over-weig $210 $205

ht

Group 1 equal-wei $394 $397

Automotive ght

Lithia Motors over-weig $360 $345

ht

Penske equal-wei $161 $170.30

Automotive ght

Group

Sonic equal-wei $64 $63

Automotive ght

Brokerage believes the six public auto dealers generate diverse cash flow streams owing to essential transportation needs

“The current stock setup (for the companies) is tricky due to an on-going earnings normalization from a COVID era boom” - brokerage

Sees companies as “shareholder-friendly” businesses in long term

Up to last close, the S&P 500 automotive retail sub-index (.SPLRCAUTR) was up 16.5% YTD

### Related Stocks

- [GPI.US - Group 1 Automotive](https://longbridge.com/en/quote/GPI.US.md)
- [AN.US - Autonation](https://longbridge.com/en/quote/AN.US.md)

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> **Disclaimer**: This article is for reference only and does not constitute any investment advice.