Asbury Automotive Group, Inc. (NYSE:ABG) is one of billionaire David Abrams’ best stock picks. Wall Road has a consensus Maintain score 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 Chubby score 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 reducing the value goal, Stephens cited climate influence. It identified that round 40% of Asbury’s retailer places had been uncovered to antagonistic climate situations in Q1.
Whereas Stephens sees pressures for Asbury within the quick 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 means 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 places in Indiana, Missouri, and South Carolina. This transaction introduced it $210 million in internet proceeds.
Asbury CEO David Hult mentioned 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 obtainable buyback authorization to $500 million.
Asbury Automotive Group Inc (NYSE:ABG) is an American automotive retailer. It operates greater than 160 dealership places throughout the US, promoting new and used autos. It additionally gives restore companies, and offers automotive buy financing and insurance coverage options. The corporate relies in Duluth, Georgia.
Whereas we acknowledge the potential of ABG as an funding, we imagine sure AI shares supply higher upside potential and carry much less draw back danger. In case you’re on the lookout 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 best short-term AI stock.
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