---
title: "Auto dealerships' high-margin back-end businesses underappreciated by investors — UBS"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/287809484.md"
description: "UBS analyst Joseph Spak initiates coverage of Lithia Motors, Sonic Automotive, and AutoNation with a Buy rating, highlighting their strong back-end businesses and competitive advantages. He notes that these companies are well-positioned for growth, with solid free cash flow and potential for shareholder returns. Spak emphasizes the underappreciated profitability of parts & service and financing & insurance sectors, while also mentioning the potential for consolidation and partnerships with Chinese OEMs in Europe."
datetime: "2026-05-27T18:43:06.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/287809484.md)
  - [en](https://longbridge.com/en/news/287809484.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/287809484.md)
---

# Auto dealerships' high-margin back-end businesses underappreciated by investors — UBS

Per-unit economics for the auto dealer sector have retreated from their 2023 peak but have normalized and stabilized above pre-COVID levels, with several names within the space better positioned to use scale and technology to build their competitive advantage over rivals. This leads UBS analyst Joseph Spak to initiate coverage of Lithia Motors (LAD...

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