Argus launched coverage on AutoNation ( NYSE: AN ) with a Buy rating.
Analysts Taylor Conrad and Rachel Cheng called AutoNation ( AN ) well positioned for the future of car buying.
"In particular, AutoNation's omnichannel approach, which integrates online and in-store purchasing, gives customers the ability to buy a car on their own terms. This differentiates AutoNation from online-only and in-store-only retailers and has enabled it to boost market share."
The firm has a favorable view of the investments made by AutoNation ( AN ) in technology and expects the increased emphasis on customer self-service to boost sales and margins.
AutoNation ( AN ) is seen as being attractively valued at the current price, which is noted to be 5X the firm's 2023 EPS estimate vs. the peer average of 8X. While the price-book multiple is higher than the peer average, Argus believes that AN merits a higher valuation based on the company's strong balance sheet, experienced management team, and emphasis on omnichannel sales and customer self-service. Argus' price target on AN of $150, implying a multiple of 6X the 2023 EPS estimate.
Shares of AutoNation ( AN ) moved up 0.14% premarket to $124.59.
The Seeking Alpha Quant Rating on AN recently moved up Hold from Strong Buy.
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AutoNation attracts a buy rating from Argus with tech investments seen paying off