The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"
Wall Street's median 12-month price target for Penske Automotive Group Inc is $210.00, about 4.5% below its July 28 closing price of $220.01
The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 11 three months ago
Outlook and growth drivers
Company says improved freight environment is driving strong Class 8 truck order activity
Penske expects recent acquisitions to add $2 bln in estimated annualized revenue
Q2 results and dividend increase
U.S. auto and truck retailer's Q2 revenue rose 6%, beating analyst expectations
Adjusted EPS for Q2 beat analyst expectations
Company raised quarterly dividend by 1.4% to $1.44 per share
Segment performance and key details
Unit deliveries - Co said 5% increase in new and used automotive units delivered was driven by resilient consumer demand and improved new vehicle availability
- Service and parts gross margin improved by 80 basis points, with same-store service and parts revenue up 2% and gross profit up 3%
Commercial truck market - Improved freight environment led to increased Class 8 truck orders and a 5% rise in service and parts revenue in commercial truck dealerships
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