Breaking Down Lithia Motors: 7 Analysts Share Their Views
Providing a diverse range of perspectives from bullish to bearish, 7 analysts have published ratings on Lithia Motors (NYSE:LAD) in the last three months.
In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 0 | 5 | 2 | 0 | 0 |
| Last 30D | 0 | 1 | 0 | 0 | 0 |
| 1M Ago | 0 | 2 | 1 | 0 | 0 |
| 2M Ago | 0 | 1 | 1 | 0 | 0 |
| 3M Ago | 0 | 1 | 0 | 0 | 0 |
The 12-month price targets, analyzed by analysts, offer insights with an average target of $384.0, a high estimate of $500.00, and a low estimate of $350.00. This upward trend is evident, with the current average reflecting a 2.21% increase from the previous average price target of $375.71.
Breaking Down Analyst Ratings: A Detailed Examination
The standing of Lithia Motors among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| John Babcock | Barclays | Lowers | Overweight | $380.00 | $390.00 |
| Rajat Gupta | JP Morgan | Lowers | Overweight | $350.00 | $355.00 |
| Colin Langan | Wells Fargo | Lowers | Equal-Weight | $355.00 | $358.00 |
| John Babcock | Barclays | Lowers | Overweight | $390.00 | $410.00 |
| Rajat Gupta | JP Morgan | Raises | Overweight | $355.00 | $350.00 |
| Colin Langan | Wells Fargo | Raises | Equal-Weight | $358.00 | $327.00 |
| Douglas Dutton | Evercore ISI Group | Raises | Outperform | $500.00 | $440.00 |
Key Insights:
- Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to Lithia Motors. This insight gives a snapshot of analysts' perspectives on the current state of the company.
- Rating: Providing a comprehensive analysis, analysts offer qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of Lithia Motors compared to the broader market.
- Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Lithia Motors's stock. This comparison reveals trends in analysts' expectations over time.
For valuable insights into Lithia Motors's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.
Stay up to date on Lithia Motors analyst ratings.
Get to Know Lithia Motors Better
Lithia Motors is a retailer of new and used vehicles and related services. The company offers over 50 brands of vehicles at nearly 500 stores globally across the US, Canada, and UK. The company has expanded largely through the acquisition of dealerships in smaller regional markets but now seeks to grow in any part of the US and we expect more deals over time in the US and, at times, abroad. Annual revenue in 2024 was $36.2 billion and we see over $50 billion possible in a few years. The US was 78% of 2024 revenue and the UK second at 19%, due to the 2024 Pendragon acquisition. In 2024, new vehicle sales were about 49% of total revenue. Lithia was founded in 1946, went public in 1996, and is the largest US auto dealer. It is based in Medford, Oregon.
Lithia Motors: A Financial Overview
Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.
Revenue Growth: Lithia Motors displayed positive results in 3M. As of 30 September, 2025, the company achieved a solid revenue growth rate of approximately 4.93%. This indicates a notable increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: Lithia Motors's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 2.24% net margin, the company effectively manages costs and achieves strong profitability.
Return on Equity (ROE): Lithia Motors's ROE excels beyond industry benchmarks, reaching 3.16%. This signifies robust financial management and efficient use of shareholder equity capital.
Return on Assets (ROA): Lithia Motors's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 0.89%, the company showcases efficient use of assets and strong financial health.
Debt Management: Lithia Motors's debt-to-equity ratio is below the industry average. With a ratio of 2.17, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
The Basics of Analyst Ratings
Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.
Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.
Some analysts will also offer forecasts for metrics like growth estimates, earnings, and revenue to provide further guidance on stocks. Investors who use analyst ratings should note that this specialized advice comes from humans and may be subject to error.
This article was generated by Benzinga's automated content engine and reviewed by an editor.