As previously reported, Seaport Research downgraded Asbury Automotive (ABG) to Neutral from Buy and withdrew the firm’s price target citing concerns about the earnings impact stemming from the upcoming roll-out of Total Care Auto, Asbury’s in-house Finance and Insurance, or F&I, provider. TCA growth, as it is rolled out to additional stores, will result in a headwind to pretax income that the firm estimates at greater than $2.00 in annual EPS. While the firm forecasts EPS growth for each of Asbury’s peers in 2025, it forecasts a 2.6% earnings decline for Asbury, the analyst noted.
Maximize Your Portfolio with Data Driven Insights:
- Leverage the power of TipRanks' Smart Score a data driven tool to help you uncover top performing stocks and make informed investment decisions.
- Monitor your stock picks and compare them to top Wall Street Analysts' recommendations with Your Smart Portfolio
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on ABG:
- Asbury Automotive downgraded to Neutral from Buy at Seaport Research
- Asbury Automotive price target lowered to $260 from $265 at JPMorgan
- Asbury Automotive price target raised to $260 from $240 at Craig-Hallum
- Asbury Automotive Sees Revenue Rise Amid Challenges
- Asbury Automotive reports Q3 EPS $6.35, consensus $6.58