LAD

Lithia Motors Inc

Consumer, Industrial/Transportation


Presented:03/19/2015
Price:$96.68
Cap:$2.54B
Current Price:$303.66
Cap:$8.12B

Presented

Date03/19/2015
Price$96.68
Market Cap$2.54B
Ent Value$4.33B
P/E Ratio18.8x
Book Value$25.66
Div Yield0.66%
Shares O/S26.25M
Ave Daily Vol270,000
Short Int5.31%

Current

Price$303.66
Market Cap$8.12B
Lithia Motors, Inc. operates as an automotive franchisee and retailer of new and used vehicles in the United States. The company sells new and used cars, and replacement parts; provides vehicle maintenance, warranty, paint, and repair services; and offers related financing; and sells service contracts, vehicle protection products, and credit insurance products. As of March 2, 2015, it offered 30 brands of new vehicles and various brands of used vehicles in 130 stores; and online through Lithia.com and DCHauto.com. The company was founded in 1946 and is headquartered in Medford, Oregon.

Publicly traded companies mentioned herein: Fiat Chrysler Automobiles NV (FCAU), Ford Motor Co (F), General Motors Co (GM), Lithia Motors Inc (LAD)

Highlights

The presenter is long shares of Lithia Motors (LAD), citing significant upside from the acquisition of DCH Auto Group as well as general benefits from the growing parts and services story and domestic OEM recovery. He sees DCH as an “undermanaged asset” with a lot of “low-hanging fruit.” In addition, he views DCH as a way for LAD to diversify from its historical business, both geographically and demographically, and said it could act as a new acquisition platform to further grow business on the East Coast. He has a $120 price target in a 9 – 12 month period, up from $95 today.

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Idea Discussion

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