Asbury Automotive initiated with an Equal Weight at Stephens

Stephens analyst Jeff Lick initiated coverage of Asbury Automotive with an Equal Weight rating and $216 price target. The company’s long-term average valuation multiples are slightly lower than peers and this is unlikely to change in the near future given the heightened uncertainty of over 70% of Asbury ‘s run-rate revenue being acquired in the last four years, the analyst tells investors in a research note. However, the firm says these recent acquisitions have meaningfully improved Asbury’s geographic footprint.