$LAD

UBS Downgrades Lithia Motors to Neutral From Buy, Adjusts PT to $440 From $370

Top Midday Gainers

Huron Consulting (HURN) reported Q2 adjusted earnings and revenue above market expectations late Tuesday and lifted the full-year 2026 guidance. Truist raised its price target on Huron Consulting to $175 from $155 while keeping its buy rating.Shares soared over 38% on Wednesday amid a jump in intraday trading volume to over 795,700 from a daily average of about 288,000.Lithia Motors (LAD) shares soared amid heavy trading after the company reported higher Q2 adjusted earnings and revenue on Wednesday.Shares jumped 19%, with intraday trading volume rising to more than 984,800, versus the stock's daily average of about 295,000.Cheesecake Factory (CAKE) reported stronger-than-expected Q2 adjusted earnings and sales late Tuesday. Morgan Stanley upgraded Cheesecake Factory to equal weight from underweight while raising its price target to $80 from $50.Shares advanced 11% amid an increase in intraday trading volume to over 3.5 million from a daily average of roughly 1.34 million.Price: $168.09, Change: $+46.72, Percent Change: +38.49%

Sector Update: Consumer Stocks Mixed Pre-Bell Wednesday

Consumer stocks were mixed premarket Wednesday, with the State Street Consumer Staples Select Sector SPDR ETF (XLP) retreating 0.2% and the State Street Consumer Discretionary Select Sector SPDR ETF (XLY) was flat.Unilever (UL) shares were down more than 2% pre-bell following a nearly 9% rise at the previous close. Reuters reported that the company agreed to protect the employment terms and conditions of workers in its European and UK food business for two years after its planned 2027 merger with McCormick (MKC). McCormick stock was fractionally higher.Ford Motor (F) shares rose more than 6% after the automaker lifted its full-year core profit outlook, while the company reported an unexpected year-over-year increase in its Q2 earnings and recorded revenue above market estimates.Lithia & Driveway (LAD) stock was 4% higher after the company reported higher Q2 adjusted earnings and revenue.

Lithia & Driveway Q2 Adjusted Earnings, Revenue Rise; Dividend Raised

Lithia & Driveway (LAD) reported Q2 adjusted earnings Wednesday of $10.03 per diluted share, up from $9.20 a year earlier.Analysts surveyed by FactSet expected $8.73.Revenue for the quarter ended June 30 was $9.79 billion, up from $9.58 billion a year earlier.Analysts expected $9.64 billion.The company also said it raised its quarterly dividend by 23% to $0.70 a share, payable Aug. 21 to holders of record Aug. 7.Shares of the company were up more than 4% in Wednesday premarket activity.Price: $375.40, Change: $+17.08, Percent Change: +4.77%

UBS Lifts Lithia Motors Price Target to $370 From $348, Maintains Buy Rating

Lithia Motors (LAD) has an average rating of overweight and mean price target of $366.53, according to analysts polled by FactSet.Price: $314.19, Change: $+2.01, Percent Change: +0.64%

UBS Initiates Lithia Motors at Buy With $348 Price Target

Lithia Motors (LAD) has an average rating of overweight and mean price target of $366.53, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)

Research Alert: CFRA Reiterates Strong Buy Opinion On Shares Of Lithia Motors Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lower our 12-month target by $25 to $375, based on a 2027 P/E of 9.0x, a modest discount to LAD's 10-year forward P/E of 10.3x. We reduce our adjusted EPS estimates to $35.30 from $39.25 for '26 and to $41.80 from $43.20 for '27. Following LAD's Q1 earnings beat, we are lowering our estimates and price target but reiterating our Strong Buy on the shares. LAD remains our top pick in auto retail, as the company continues to outperform in a more challenging environment for dealerships. LAD's same-store-sales growth is outperforming peers by a wide margin and its combination of aggressive share repurchases and accretive acquisitions is helping support its bottom line. Impressively, LAD bought back ~4% of total outstanding shares in Q1 after retiring 11% of its share count in 2025. We find LAD's current risk/reward compelling with significant upside potential in a more favorable demand environment, continuing to view the long-term growth story as intact and noting management's history of solid execution.

Research Alert: Lad: Q1 Earnings Well Ahead Of Expectations; Buybacks Impress

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Lithia Motors (LAD) posted Q1 adjusted EPS of $7.34 vs. $7.93 (-7%), well ahead of the $6.86 consensus. The beat was driven by stronger-than-expected revenue and margins, as net sales rose 1.0% to $9.27B ($50M ahead of consensus) and gross margin contracted 10 bps to 15.3% (10 bps ahead of consensus). LAD posted weaker gross margins across its New Vehicle (-50 bps) and Used Vehicle (-40 bps) segments, partially offset by stronger Aftersales results (+150 bps). LAD bought back 942K shares or 4.0% of its total outstanding shares for $259M in Q1 (an average price of $274.62/share). LAD said that stores acquired during Q1 are expected to generate $425M in annualized revenue. LAD shares are up in pre-market trading. We were particularly impressed by its buybacks. After disappointing earnings from other auto dealerships in recent days, LAD proved that its disciplined approach to acquisitions, cash returns to shareholders, and operational efficiency are paying off amid a difficult fundamental backdrop.

BofA Securities Adjusts Lithia Motors Price Target to $320 From $335

Lithia Motors (LAD) has an average rating of overweight and mean price target of $361.29, according to analysts polled by FactSet.(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://finwires.com/en/contact)Price: $274.12, Change: $+1.01, Percent Change: +0.37%

Auto Dealers Seen Facing Weaker Q1 on Weather Disruption, BofA Says

The automotive dealership industry is expected to see a weaker Q1 performance due to weather disruptions and softer vehicle sales, BofA Securities said in a note on Monday.The firm said Q1 earnings per share estimates for Asbury Automotive (ABG), AutoNation (AN), Group 1 Automotive (GPI), Penske Automotive (PAG), Sonic Automotive (SAH), and Lithia Motors (LAD) have been reduced by an average of 13%. This mainly reflects weather disruptions in late January and February, which affected both vehicle sales and parts and service.Same-store new unit sales are now expected to decline by 5.4% on average, also due to tough comparisons from pre-buying ahead of tariffs implemented at the end of March 2025, BofA added.For Q2, same-store new unit sales are projected to decline by 1.8% on average, again reflecting difficult comparisons from April of last year due to pre-buying before tariff-related price increases. Key risks to recovery include lower consumer confidence linked to the Iran War and higher gas prices, which historically affect US auto sales.The firm added that AutoNation remains a top pick heading into earnings, as its store footprint was less affected by weather disruptions. There is also potential upside to EPS from share buybacks, which may offset higher selling, general, and administrative expenses.BofA lowered price targets of Asbury Automotive to $238 from $255, Group 1 Automotive to $390 from $430, Lithia Motors to $320 from $335, and Penske Automotive to $185 from $200.Price: $197.68, Change: $-2.85, Percent Change: -1.42%