Asbury Automotive Group, Inc. (NYSE:ABG) is one in every of billionaire David Abrams’ greatest inventory picks. Wall Avenue has a consensus Maintain ranking on Asbury Automotive Group Inc (NYSE:ABG) inventory, and the $239.20 value goal suggests almost 20% upside potential.
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On April 8, Stephens minimize its value goal on Asbury Automotive Group Inc (NYSE:ABG) to $254 from $277 whereas reaffirming an Obese ranking on the inventory. The agency expects Asbury’s Q1 2026 EBITDA to say no 12.4% YoY and EPS to drop 20.5% decline YoY. It lowered its value goal to mirror its diminished Q1 earnings estimates for the automotive retailer.
In lowering the earnings estimates and decreasing the worth goal, Stephens cited climate affect. It identified that round 40% of Asbury’s retailer areas have been uncovered to antagonistic climate circumstances in Q1.
Whereas Stephens sees pressures for Asbury within the brief time period, it stays bullish on the corporate’s long-term outlook. As an illustration, the agency sees Asbury’s EPS rising to greater than $35 in 2028. The corporate posted adjusted EPS of $27.24 in 2025.
Asbury is within the strategy of optimizing its retailer portfolio. As a part of this effort, the corporate introduced in February that it had accomplished the sale of 10 dealership areas in Indiana, Missouri, and South Carolina. This transaction introduced it $210 million in web proceeds.
Asbury CEO David Hult stated the proceeds are anticipated for use towards debt paydown and share repurchases. On debt, the corporate goals to chop its leverage ratio to under 3.0x. On share purchases, the corporate added $424 million to the buyback program, bringing the out there buyback authorization to $500 million.
Asbury Automotive Group Inc (NYSE:ABG) is an American automotive retailer. It operates greater than 160 dealership areas throughout the US, promoting new and used autos. It additionally gives restore providers, and offers automobile buy financing and insurance coverage options. The corporate is predicated in Duluth, Georgia.
Whereas we acknowledge the potential of ABG as an funding, we consider sure AI shares provide better upside potential and carry much less draw back threat. If you happen to’re searching for an especially undervalued AI inventory that additionally stands to profit considerably from Trump-era tariffs and the onshoring development, see our free report on the greatest short-term AI inventory.
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