JPMorgan Cuts Lithia Motors Price Target to $335, Barclays Trims to $380
JPMorgan downgraded Lithia Motors to Neutral from Overweight, cutting its price target to $335 from $350 over execution challenges, cost-control issues and higher leverage. Barclays cut its target to $380 from $390 while maintaining Overweight after fiscal Q4 revenue hit $9.20B and full-year sales reached $37.63B.
1. JPMorgan Downgrades Lithia to Neutral
JPMorgan lowered Lithia Motors’ rating from Overweight to Neutral and reduced its price target to $335 from $350. The firm highlighted execution visibility challenges, weaker-than-expected cost controls and a balance sheet leverage level approaching the upper end of management’s target range.
2. Barclays Trims Price Target
Barclays maintained its Overweight rating on Lithia Motors but trimmed the price target to $380 from $390. The firm noted that fiscal Q4 results missed estimates yet expects solid earnings growth in 2026.
3. Fiscal Q4 and Full-Year 2025 Results
Lithia reported record fourth-quarter revenue of $9.20 billion and full-year sales of $37.63 billion, up 4.0%. Full-year diluted EPS rose 9.7%, with adjusted EPS up 15.7%, driven by strong same-store performance despite margin pressures.