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Investing.com - Stephens raised its price target on AutoNation Inc. (NYSE:AN) to $200.00 from $190.00 on Tuesday, while maintaining an Equal Weight rating on the stock. According to InvestingPro data, the stock is currently trading above its Fair Value, with analyst targets ranging from $185 to $255.
The price target increase follows AutoNation’s second-quarter 2025 results released on July 25. The company reported EBITDA of $387.8 million and adjusted EPS of $5.46, representing year-over-year growth of 19.5% and 36.8% respectively, exceeding Street expectations by 9.9% and 15.1%. InvestingPro analysis shows the company maintains a P/E ratio of 12.7x and has generated $27.5 billion in revenue over the last twelve months.
Despite the positive results, Stephens expressed caution about the P6 dealer space, noting that current estimates may not accurately reflect potential headwinds from lower tariff-affected new GPUs and lower year-over-year volumes expected in Q4 2025, Q1 2026, and possibly Q2 2026. InvestingPro Tips highlight that management has been aggressively buying back shares, and four analysts have recently revised their earnings upwards for the upcoming period. Subscribers can access 8 additional exclusive tips on InvestingPro.
The research firm highlighted AutoNation’s U.S.-only focus and its strategy of driving new volumes that flow through to other business lines including used vehicles, service and parts, and finance and insurance as appropriate for current market conditions.
Stephens also noted AutoNation’s recently added ABS funding capabilities to AN Finance, which enables greater share repurchases, and projected the company will exit 2026 generating $20.66 in free cash flow per share.
In other recent news, AutoNation Inc. reported strong financial results for the second quarter of 2025, surpassing both earnings and revenue expectations. The company achieved earnings per share (EPS) of $5.46, which exceeded analyst projections of $4.69 by 16.42%. Additionally, AutoNation’s revenue reached $7 billion, outperforming forecasts by 1.9%. These results highlight the company’s robust performance during the quarter. The positive earnings announcement comes amid a backdrop of analysts closely monitoring AutoNation’s financial health. Investors and analysts alike will be paying attention to how these developments influence future analyst ratings and forecasts. These recent developments underscore the importance of earnings and revenue figures for investor assessments.
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