
AutoNation (AN) Stock Forecast & Price Target
AutoNation (AN) Analyst Ratings
Bulls say
AutoNation demonstrates a strong financial performance, highlighted by a notable 7.7% year-over-year increase in same-store sales in the fourth quarter of 2024, driven by a significant 13.3% growth in new vehicle sales and an 18.9% increase in AutoNation USA units. In addition, the company maintained efficient cost management with SG&A as a percentage of gross profit improving to 66.3%, below previous estimates, suggesting operational effectiveness. Furthermore, the growth in gross profit from parts and service, alongside a 5.4% increase in finance and insurance revenue, reinforces AutoNation's resilient business model and broad revenue diversification across various automotive sectors.
Bears say
AutoNation's financial performance indicators reveal troubling trends, as the company experienced a decline in both operating margin, which fell by 31 basis points to 4.9%, and gross margin, down 74 basis points year-over-year to 17.2%, indicating a challenging sales mix. Additionally, the slight year-over-year decrease of 0.5% in used vehicle sales and a projected 12% decrease in gross profit per unit (GPU) for new vehicles in 2025 further exacerbate concerns regarding revenue growth sustainability. Furthermore, the company's heavy reliance on a leveraged balance sheet to finance inventory and acquisitions may pose a risk, particularly if leadership changes occur, as any loss of key personnel could negatively impact future performance.
This aggregate rating is based on analysts' research of AutoNation and is not a guaranteed prediction by Public.com or investment advice.
AutoNation (AN) Analyst Forecast & Price Prediction
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