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Investing.com - JPMorgan has upgraded Penske Automotive Group (NYSE:PAG) from Underweight to Neutral and raised its price target to $175.00 from $155.00. The stock, currently trading at $168.40 with a market capitalization of $11.12 billion, appears to be trading above its InvestingPro Fair Value.
The upgrade reflects JPMorgan’s assessment that the period of weak same-store performance and slower earnings growth compared to peers has run its course, with potential for in-line or better growth into 2026.
The firm highlighted Penske’s under-levered balance sheet, which is among the lowest in JPMorgan’s coverage, providing additional upside potential for the automotive retailer.
JPMorgan noted that while uncertainty remains around the freight cycle, improved visibility on recovery could create room for further multiple expansion beyond what is currently factored into the price target.
The firm also pointed out that anticipated free cash flow uplift from bonus depreciation tax shields associated with truck purchases at PTL has brought Penske’s valuation on FCF and EBITDA metrics more in line with historical ranges.
In other recent news, Penske Automotive Group Inc . reported its second-quarter 2025 earnings, exceeding earnings per share (EPS) expectations. The company announced an EPS of $3.78, surpassing the forecasted $3.59. However, Penske Automotive fell short of revenue expectations, reporting $7.66 billion compared to the anticipated $7.92 billion. Despite the mixed earnings results, the company’s stock showed a slight decline in pre-market trading. No specific stock upgrades or downgrades from analyst firms were reported following the earnings release. These developments are part of the latest updates concerning Penske Automotive’s financial performance.
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