Group 1 Automotive: Morgan Stanley maintains Overweight, PT raised to $485 from $470

Group 1 Automotive: Morgan Stanley maintains Overweight, PT raised to $485 from $470

In a recent update, Morgan Stanley has raised its price target for Group 1 Automotive (NYSE: GPI) to $485 from $470, while maintaining an "Overweight" rating on the stock. This move comes as the automotive retailer continues to demonstrate strong performance in its financial results and market outlook.

The latest earnings report from Group 1 Automotive showed that the company exceeded analyst estimates, posting an EPS of $11.52 on revenues of $5.70 billion, a 21.4% increase from the previous year [1]. The company's recent earnings report also highlighted a robust performance in its automotive retail segment, with a net margin of 2.18% and a return on equity of 18.10%.

Adding to the positive sentiment, Seaport Res Ptn has recently raised its Q3 2025 EPS estimate for Group 1 Automotive from $10.21 to $10.50, while the company aims for a full-year EPS of $41.00 [1]. This optimistic outlook is supported by the company's strong revenue growth and expanding market presence, which includes over 259 automotive dealerships and 324 franchises in the United States and the United Kingdom [2].

Moreover, several institutional investors have shown confidence in Group 1 Automotive's prospects. For instance, Nuveen LLC, Livforsakringsbolaget Skandia Omsesidigt, and Advent International L.P. have recently increased their holdings in the company's stock, reflecting a bullish sentiment among investors [1].

Despite the positive outlook, Group 1 Automotive faces several challenges, including increasing competition in the automotive retail sector and potential disruptions from emerging technologies such as electric vehicles. However, the company's strong financial performance and expanding market presence suggest that it is well-positioned to navigate these challenges and continue its growth trajectory.

In conclusion, Morgan Stanley's raise in price target for Group 1 Automotive reflects the positive sentiment surrounding the company's recent performance and market outlook. Investors should closely monitor the company's ongoing financial results and market developments to assess the potential impact on its stock price.

References:
[1] https://www.marketbeat.com/instant-alerts/seaport-res-ptn-has-optimistic-outlook-of-gpi-q3-earnings-2025-08-13/
[2] https://www.stockopedia.com/share-prices/group-1-automotive-NYQ:GPI/