Street Calls of the Week
Investing.com - Benchmark raised the price target on Penske Automotive Group (NYSE:PAG) to $190.00 from $185.00 on Wednesday, while maintaining a Buy rating on the stock. The company, currently trading at $179.68 with a market capitalization of $11.87 billion, shows mixed signals according to InvestingPro data, with a P/E ratio of 12.36 and a dividend yield of 2.96%.
The research firm’s decision follows a meeting with Penske’s CFO at Benchmark’s 4th Annual Benchmark StoneX Consumer Conference in New York City last week.
Benchmark highlighted Penske’s commercial truck business as "a key differentiator with potential to drive upside over the next few years" in its analysis of the company.
The firm also noted a "resilient U.S. auto retail backdrop and strong luxury exposure" for Penske, though it acknowledged that "the UK market remains soft."
Benchmark made modest adjustments to its unit economics projections, including price, volumes, and gross profit per unit, resulting in a small increase in its estimates for fiscal year 2025 and the subsequent price target increase.
In other recent news, Penske Automotive Group reported its second-quarter 2025 earnings, exceeding earnings per share (EPS) expectations with a reported EPS of $3.78, compared to the forecasted $3.59. However, the company reported revenue of $7.66 billion, falling short of the anticipated $7.92 billion. In analyst actions, Citi reiterated its Buy rating on Penske Automotive stock, maintaining a price target of $200.00 and initiating a 30-day upside catalyst call, suggesting potential short-term positive momentum. Additionally, JPMorgan upgraded Penske Automotive from Underweight to Neutral, raising its price target to $175.00 from $155.00. This upgrade reflects JPMorgan’s belief that the company’s period of weaker same-store performance and slower earnings growth has ended, with potential for in-line or better growth projected into 2026. These developments highlight a mix of positive earnings performance and analyst optimism about the company’s future growth prospects.
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