Breaking Down AutoNation: 4 Analysts Share Their Views

Across the recent three months, 4 analysts have shared their insights on AutoNation (NYSE:AN), expressing a variety of opinions spanning from bullish to bearish.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $197.25, a high estimate of $255.00, and a low estimate of $175.00. A negative shift in sentiment is evident as analysts have decreased the average price target by 4.48%.

Understanding Analyst Ratings: A Comprehensive Breakdown

The standing of AutoNation among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to AutoNation. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of AutoNation compared to the broader market.
• Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of AutoNation's stock. This comparison reveals trends in analysts' expectations over time.

Considering these analyst evaluations in conjunction with other financial indicators can offer a comprehensive understanding of AutoNation's market position. Stay informed and make well-informed decisions with our Ratings Table.

Stay up to date on AutoNation analyst ratings.

Delving into AutoNation's Background

AutoNation is the second-largest automotive dealer in the United States, with 2024 revenue of about $27 billion and over 240 dealerships, plus 52 collision centers. The firm also has 26 AutoNation USA used-vehicle stores, a captive lender, four auction sites, and three parts distributors across 20 states primarily in Sunbelt metropolitan areas. New-vehicle sales account for nearly half of revenue; the company also sells used vehicles, parts, and repair services as well as auto financing. The company (formerly Republic Industries) divested its waste management unit (Republic Services) in 1999 and its car rental businesses (ANC Rental) in 2000. Wayne Huizenga founded the company in the 1990s to bring the rollup acquisition strategy to auto retailing, which has proved to be a smart move.

Unraveling the Financial Story of AutoNation

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

Revenue Growth: AutoNation's remarkable performance in 3M is evident. As of 31 March, 2025, the company achieved an impressive revenue growth rate of 3.16%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Consumer Discretionary sector.

Net Margin: AutoNation's net margin excels beyond industry benchmarks, reaching 2.62%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 7.22%, the company showcases effective utilization of equity capital.

Return on Assets (ROA): AutoNation's ROA stands out, surpassing industry averages. With an impressive ROA of 1.33%, the company demonstrates effective utilization of assets and strong financial performance.

Debt Management: AutoNation's debt-to-equity ratio is below the industry average at 3.76, reflecting a lower dependency on debt financing and a more conservative financial approach.

Understanding the Relevance of Analyst Ratings

Benzinga tracks 150 analyst firms and reports on their stock expectations. Analysts typically arrive at their conclusions by predicting how much money a company will make in the future, usually the upcoming five years, and how risky or predictable that company's revenue streams are.

Analysts attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish their ratings on stocks. Analysts typically rate each stock once per quarter or whenever the company has a major update.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.