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Guggenheim downgrades Group 1 Automotive to 'neutral'

ReutersMay 14, 2025 12:20 PM

Guggenheim downgrades automotive retailer Group 1 Automotive GPI.N to "neutral" from "buy"; price target unchanged at $426

Says rating change due to mix of premium valuation, potential tariff risk on the business and expected slow sales

Adds price hike due to tariff will start impacting co's results sooner than the peer

"Softening U.S. new seasonally adjusted annualised rate (SAAR) environment and premium valuation pose risks in the near-term"- Guggenheim

Co's adj. EPS beat analysts' estimates for two consecutive quarters

Seven of 9 brokerages rate the stock "buy" or higher, 2 "hold"; their median PT is $480 - data compiled by LSEG

As of last close, stock had risen 6.5% YTD

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