Goldman Sachs Upgrades Group 1 Automotive
Goldman Sachs upgraded Group 1 Automotive (GPI ) to in-line from underperform.
Analyst Matthew Fassler says the appointment of a new CEO with an intensive automotive background provides a catalyst for improving results after several quarters of shortfalls. He notes Group 1 faces, on average, the easiest EBITDA margin comps in the auto retail group over the next four quarters.
He says the stock underperformed and trades at a discount to auto retail, not to mention the broader hardlines retail group. He notes inventory overages that constituted the biggest issue impeding auto retail EPS should subside, as promotions by domestic producers clear clogged channels. He says the company operates with a desirable brand mix.