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Investing.com - Stephens has upgraded Asbury Automotive Group (NYSE:ABG) from Equal Weight to Overweight and raised its price target to $277.00 from $225.00. The stock, currently trading at $243.18, appears slightly undervalued according to ABG">InvestingPro’s Fair Value model.
The upgrade follows Asbury’s second-quarter 2025 earnings release and completion of its $3 billion Chambers acquisition in late July, according to Stephens’ research note.
Stephens believes Asbury has "$35+ in 2028 EPS power" based on assets currently on its balance sheet and factors under the company’s control, despite acknowledging potential near-term challenges.
The research firm specifically noted that the fourth quarter of 2025 and first two quarters of 2026 could represent "a tough stretch for auto dealers and OEMs," suggesting a potentially "bumpy ride over the next ~12 months."
Stephens decided to proceed with the upgrade despite timing concerns, stating "we don’t believe we can perfectly time our upgrade of ABG, so we have decided to not try," while expressing confidence that "time is on our side."
In other recent news, Asbury Automotive Group reported its Q2 2025 earnings, which surpassed expectations with an earnings per share (EPS) of $7.43, compared to the forecasted $6.83. Despite this positive EPS result, the company’s revenue fell short of projections, recording $4.37 billion against an anticipated $4.45 billion. In analyst activity, CFRA has adjusted its outlook on Asbury Automotive Group, lowering the stock price target from $300.00 to $225.00 while maintaining a Hold rating. This adjustment came as CFRA reduced its adjusted EPS estimates for 2025 and 2026, citing concerns about the company’s operational execution. These developments highlight the mixed financial performance and outlook for Asbury Automotive Group.
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