Asbury Automotive Group

ABG · NYSE

$172.13+$2.19 (+1.29%)TodayMarket closed · Oct 20, 6:30 PM ET

Prev close $169.94

ABG analyst rating

HoldConsensus of 9 analysts over the last 12 months. 22% rate it a buy.

Strong buy0
Buy2
Hold6
Underperform1
Sell0

12-month price target · 13 analysts

Average $261.40 (+51.9% upside)

Low: $227.97
Now: $172.13
High: $315.00

Upgrades and downgrades

The latest rating actions, newest first

ABG analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
UBS	Oct 7, 2026	Maintains	Neutral	$250.00 → $193.00	39%
JP Morgan	Oct 6, 2026	Maintains	Underweight	$190.00 → $185.00	50%
Barclays	Oct 6, 2026	Maintains	Equal-Weight	$265.00 → $230.00	28%
Morgan Stanley	Oct 5, 2026	Maintains	Equal-Weight	$230.00 → $184.00	50%
Seaport Global	Sep 8, 2026	Upgrade	Neutral → Buy	$300.00	41%
Morgan Stanley	Aug 7, 2026	Maintains	Equal-Weight	$220.00 → $230.00	54%
JP Morgan	Aug 4, 2026	Maintains	Underweight	$220.00 → $190.00	50%
Citigroup	Jul 31, 2026	Maintains	Neutral	$212.00 → $250.00	57%
Barclays	Jul 30, 2026	Maintains	Equal-Weight	$225.00 → $265.00	28%
Barclays	Jul 15, 2026	Maintains	Equal-Weight	$235.00 → $225.00	28%

The case for and against

Updated Oct 15, 2026

Bull case

Asbury Automotive Group is attractive because its valuation appears depressed at just 8.3x/7.4x estimated 2026/2027 EPS while operational headwinds are expected to fade, setting up an earnings trough followed by double-digit earnings growth in 2027. Its fundamentals are supported by strong operating leverage opportunities, including Tekion-driven SG&A improvement from 68.6% of gross profit in 1Q26 toward the low 60s in 2027, plus upside from the July 2025 Chambers acquisition and used-vehicle optimization. With about $3 billion in annual gross profit, roughly $400 million+ in annual free cash flow, and a 3.6x leverage ratio at 1Q26, it also has meaningful capacity for disciplined buybacks and deleveraging.

Bear case

Asbury Automotive Group is viewed negatively because recent earnings volatility reflects both the Tekion DMS transition and the non-cash EPS drag from Total Care Auto, which management itself has flagged as a meaningful headwind through 2026. Its operating momentum also appears weaker than peers, with same-store new unit, used unit, service and parts revenue, and gross profit growth lagging over the last three years, while a 3.4x net leverage ratio as of 2Q26 leaves less room for error. In addition, the business remains exposed to macro slowdown, potential tax pressure, an uncertain M&A backdrop, and any stall in F&I growth as vehicle margins compress.

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