Lithia Motors

LAD · NYSE

$299.53+$6.36 (+2.17%)TodayMarket closed · Oct 20, 6:30 PM ET

Prev close $293.17

LAD analyst rating

BuyConsensus of 9 analysts over the last 12 months. 56% rate it a buy.

Strong buy0
Buy5
Hold4
Underperform0
Sell0

12-month price target · 17 analysts

Average $464.63 (+55.1% upside)

Low: $361.58
Now: $299.53
High: $551.25

Upgrades and downgrades

The latest rating actions, newest first

LAD analyst upgrades, downgrades and rating actions
Firm	Date	Action	Rating	Price target	Hit rate
Evercore ISI Group	Oct 12, 2026	Maintains	Outperform	$470.00 → $440.00	64%
UBS	Oct 7, 2026	Maintains	Neutral	$440.00 → $335.00	40%
JP Morgan	Oct 6, 2026	Maintains	Neutral	$340.00 → $320.00	50%
Barclays	Oct 6, 2026	Maintains	Overweight	$415.00 → $375.00	28%
Morgan Stanley	Oct 5, 2026	Maintains	Equal-Weight	$358.00 → $310.00	50%
Citigroup	Sep 22, 2026	Maintains	Buy	$455.00 → $409.00	57%
Barclays	Aug 19, 2026	Maintains	Overweight	$360.00 → $415.00	28%
JP Morgan	Aug 4, 2026	Maintains	Neutral	$325.00 → $340.00	50%
Evercore ISI Group	Aug 4, 2026	Maintains	Outperform	$400.00 → $470.00	64%
Citigroup	Aug 3, 2026	Maintains	Buy	$365.00 → $455.00	57%

The case for and against

Updated Apr 10, 2025

Bull case

Lithia Motors demonstrated a positive performance in 3Q24, with same-store new unit sales increasing by 2% and a significant rise in service and parts gross margin dollars by 21%, driven by the addition of its U.K. operations. The company is expected to see continued growth, with estimates for 4Q24 EBITDA growth at 8.4% and accelerating to 16.6% in 1Q25, reflecting strong operational momentum and a strategic focus on digital initiatives and aftersales. With annual revenue projected at $36.2 billion for 2024 and potential growth to over $50 billion in the coming years, Lithia Motors' trajectory appears favorable as it expands its presence in both US and international markets.

Bear case

Lithia Motors's financial outlook is clouded by a noticeable decline in gross profit per unit (GPU), with new GPUs dropping 26.1% year-over-year and falling to $3,226, alongside a significant reduction in same-store used unit sales, which decreased by 9.6%. The company is experiencing challenges with new unit volumes, as evidenced by a 15% year-over-year decline in units per average store following the Pendragon acquisition, which is contributing to weaker-than-expected sales performance. Additionally, concerns about the company’s selling, general, and administrative expenses (SGA) discipline further dampen investor confidence, given the structural shifts in its business model, including its expansion into captive auto lending.

Information on this page is provided for informational purposes only and is not a recommendation to buy, sell or hold any security. Investing involves risk, including possible loss of principal. Market data is delayed at least 15 minutes and is provided without warranty. Analyst ratings, price targets and company data come from third-party sources. Past performance does not guarantee future results.