Penske Automotive Group: Benchmark raises Buy rating, PT to $190 from $185.

Penske Automotive Group: Benchmark raises Buy rating, PT to $190 from $185.

Benchmark Securities has upgraded its rating for Penske Automotive Group, Inc. (NYSE: PAG) to a "Buy" from a previous "Neutral" rating. The firm has also increased its price target for the stock from $185.00 to $190.00. This move comes on the heels of strong earnings reports and positive analyst sentiment surrounding the automotive services company.

In its latest report, Benchmark cited Penske Automotive Group's robust financial performance and strong market position as reasons for the upgrade. The company reported earnings per share (EPS) of $3.78 for the quarter ending July 30, 2025, which exceeded analyst estimates by $0.22. Additionally, the firm's revenue of $7.66 billion for the quarter was just 0.4% below expectations.

Benchmark also highlighted Penske Automotive Group's strong balance sheet, with a current ratio of 0.90, a quick ratio of 0.21, and a debt-to-equity ratio of 0.16. The company's market capitalization stands at $12.25 billion, with a price-to-earnings ratio of 12.91 and a beta of 0.89. The firm's 50-day and 200-day simple moving averages are $179.07 and $166.48, respectively, indicating steady growth.

Investor sentiment towards Penske Automotive Group has been positive, with several hedge funds and institutional investors increasing their stakes in the company. Millennium Management LLC boosted its position by 30.9% in the first quarter, owning about 0.25% of the company's stock worth $24,175,000. Other notable investors include Cambridge Investment Research Advisors Inc., Two Sigma Investments LP, Teacher Retirement System of Texas, KBC Group NV, and SG Americas Securities LLC.

Analysts from JPMorgan Chase, Citigroup, Morgan Stanley, Bank of America, and Stephens have also shown confidence in Penske Automotive Group. JPMorgan Chase upgraded its rating to "Neutral" with a price target of $175.00, while Citigroup raised its estimate to $195.00 and gave the company a "Buy" rating. Morgan Stanley increased its price target to $190.00 and gave the company an "Overweight" rating. Bank of America raised its price target to $205.00 and gave the company a "Buy" rating.

Penske Automotive Group recently announced a quarterly dividend of $1.32 per share, representing a $5.28 annualized dividend and a dividend yield of 2.8%. This is a positive change from the company's previous quarterly dividend of $1.26. The firm's dividend payout ratio (DPR) is currently 36.74%.

The upgrade by Benchmark Securities is a testament to the positive outlook on Penske Automotive Group. The company's strong financial performance, positive analyst sentiment, and increased institutional ownership make it an attractive investment opportunity. However, investors should always conduct their own research and consider their risk tolerance before making investment decisions.