Evaluating AutoNation: Insights From 5 Financial Analysts

AutoNation, Inc. -1.38%

AutoNation, Inc.




5 analysts have expressed a variety of opinions on AutoNation (NYSE:AN) over the past quarter, offering a diverse set of opinions from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish
Total Ratings 2 0 3 0 0
Last 30D 0 0 1 0 0
1M Ago 2 0 0 0 0
2M Ago 0 0 1 0 0
3M Ago 0 0 1 0 0

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $168.6, a high estimate of $215.00, and a low estimate of $140.00. This upward trend is evident, with the current average reflecting a 5.51% increase from the previous average price target of $159.80.

price target chart

Understanding Analyst Ratings: A Comprehensive Breakdown

A clear picture of AutoNation's perception among financial experts is painted with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst Analyst Firm Action Taken Rating Current Price Target Prior Price Target
Colin Langan Wells Fargo Raises Equal-Weight $169.00 $153.00
Ronald Jewsikow Guggenheim Raises Buy $169.00 $165.00
John Murphy B of A Securities Lowers Buy $215.00 $220.00
Adam Jonas Morgan Stanley Raises Equal-Weight $140.00 $117.00
Colin Langan Wells Fargo Raises Equal-Weight $150.00 $144.00

Key Insights:

  • Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to AutoNation. This information provides a snapshot of how analysts perceive the current state of the company.
  • Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of AutoNation compared to the broader market.
  • Price Targets: Analysts explore the dynamics of price targets, providing estimates for the future value of AutoNation's stock. This examination reveals shifts in analysts' expectations over time.

Capture valuable insights into AutoNation's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.

Stay up to date on AutoNation analyst ratings.

Delving into AutoNation's Background

AutoNation is the second largest automotive dealer in the United States, with 2023 revenue of about $27 billion and over 250 dealerships, plus 53 collision centers. The firm also has 19 AutoNation USA used-vehicle stores, a captive lender, four auction sites, and three parts distributors all across 21 states primarily in Sunbelt metropolitan areas. New-vehicle sales account for nearly half of revenue; the company also sells used vehicles, parts, and repair services as well as auto financing. The company (formerly Republic Industries) spun off its waste management unit (Republic Services) in 1999 and its car rental businesses (ANC Rental) in 2000. Wayne Huizenga founded the company in the 1990s to bring the rollup acquisition strategy to auto retailing, which has proved to be a smart move.

Unraveling the Financial Story of AutoNation

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: AutoNation's revenue growth over a period of 3 months has been noteworthy. As of 31 December, 2023, the company achieved a revenue growth rate of approximately 1.05%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: AutoNation's net margin is impressive, surpassing industry averages. With a net margin of 3.19%, the company demonstrates strong profitability and effective cost management.

Return on Equity (ROE): AutoNation's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 9.93% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): AutoNation's ROA stands out, surpassing industry averages. With an impressive ROA of 1.86%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: AutoNation's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 3.63.

The Basics of Analyst Ratings

Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.

In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.

This article was generated by Benzinga's automated content engine and reviewed by an editor.

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