S&P Capital IQ Reiterates its HOLD Rating on Asbury Automotive

October 28 00:00 2011

NEW YORK, October 28 (RainbowNewsLine.com) – Analyst Efraim Levy of S&P Capital IQ reiterates his HOLD rating on the shares of Asbury Automotive (NYSE: ABG).

Analyst Efraim Levy, in a research note published yesterday mentions that Asbury Automotive reported its Q3 EPS from continuing operations in line with Capital IQ consensus estimates while operating margins were ahead of the estimates.  Asbury Automotive is witnessing depletion of Japanese brand inventories, which are enough to meet the demand but full inventory cannot be expected until early 2012, the analyst says. Although the industry new light vehicle sales are growing 11% this year and 9.2% in’12, an increase in new vehicle availability from Asbury Automotive could lead to pressure in Q4 margins, the analyst says. The analyst expects the company to deploy its free cash flows to improve the balance sheet and share repurchases.