PAG Penske Automotive Group Inc

The Presidio Group exclusively advised Hartz Automotive on the sale of its ownership interests in three Southern California Penske dealerships to Franchise Equity Partners. This transaction, which closed on December 16, involved Hartz Automotive stakes in Penske Buick-GMC and Chevrolet of Cerritos, and Penske Cadillac-Buick-GMC of South Bay. This marks Franchise Equity Partners' first automotive investment in California and highlights Presidio's expertise in complex M&A deals within the automotive retail sector.

Zacks Research has revised its FY2025 earnings per share estimate for Penske Automotive Group (NYSE:PAG) downwards to $13.54, falling below the consensus estimate of $13.86. This adjustment comes after Penske Automotive Group reported a miss on its recent quarterly earnings with an EPS of $3.23 against an expected $3.48, despite a slight year-over-year revenue increase and a raised quarterly dividend. The company also saw insider selling activity from its CFO and various institutional trading adjustments.

Penske Automotive Group (PAG) recently acquired four Toyota and Lexus dealerships from Penske Motor Group, a separate entity majority-owned by Greg Penske, son of PAG chairman Roger Penske. This transaction, valued at over $519 million, is expected to add more than $1.5 billion in annual revenue for PAG and increases its presence in key markets like Los Angeles and Dallas. The acquisition was structured with transparency and independent oversight due to the familial connection.

BofA Securities analyst Alexander Perry reinstated a Buy rating and $195 price target for Penske Automotive Group (NYSE: PAG), citing the company's strong focus on premium and luxury vehicles. This specialization, representing 73% of its automotive mix, reduces tariff-related risks and enhances growth opportunities in parts and service due to a resilient demographic of higher-income consumers. While fourth-quarter luxury volumes may be soft, Perry believes these issues are temporary and the long-term thesis for PAG remains positive.

Bank of America has initiated coverage of Penske Automotive Group (NYSE:PAG) with a "buy" rating and a $195 price target, suggesting a 17.8% upside. Despite recently missing quarterly earnings estimates, Penske Automotive Group maintains a "Moderate Buy" consensus rating from analysts, with an average price target of $184.43. The stock trades at $165.51 with a P/E of 11.65, indicating a potentially attractive valuation.

BofA Securities has reinstated its coverage of Penske Automotive Group (NYSE:PAG) with a Buy rating and a $195 price target, citing the company's market diversification and strong exposure to premium and luxury vehicles. Penske's strategy targets a resilient demographic of higher-income consumers, supporting its consistent dividend payments and diversified business model, which includes recent acquisitions expanding its dealership network.