S&P Capital IQ Reiterates its BUY Rating on Lithia Motors

October 29 00:00 2011

New York, October 29 (RainbowNewsLine.com) – Analyst Efraim Levy of S&P Capital IQ reiterates his BUY rating on the shares of Lithia Motors (NYSE: LAD), while raising his EPS estimates for the company. The target price is set to $26.

Analyst Efraim Levy, in a research note published yesterday mentions that the consensus projection on the company’s sales has been raised 25% in 2011 and 8.9% in 2012. The increase in cash dividend in May adds to Lithia Motors’ total return potential, the analyst adds. The analyst expects the company’s light vehicle sales growth to be 11% in 2011 and 9.2% in 2012. The free cash flow of the company will be used for acquisitions, dividends and share repurchases, the analyst adds. The EPS estimates for 2011 and 2012 have been raised from $1.70 to $1.88 and from $1.89 to $1.96, respectively.

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