Lithia Motors Inc. (NYSE:LAD) is one of the 10 best retail stocks with huge upside potential. On March 3, Lithia Motors Inc. (NYSE:LAD) announced that the company is acquiring Toyota of Gallatin and Mercedes-Benz of Medford. These transactions bring the company’s cumulative year-to-date annualized U.S.-based revenue through acquisitions to $225 million. The deals were financed through the company’s on-balance-sheet resources.
Earlier, on February 20, Lithia Motors Inc. was downgraded from an Overweight rating to Neutral by JPMorgan. The firm reduced the price target on the stock from $350 to $335, resulting in an upside potential of nearly 23% for investors.
The firm noted that while the company’s fourth-quarter same-store performance was robust, the effect was negated by weaker-than-anticipated cost control measures. With execution visibility continuing to be a challenge, the company’s balance sheet leverage has also now reached the high end of its targeted range.
Lithia Motors Inc. is an automotive retailer that is involved in the sale of new or used vehicles and provides related services. The company offers end-to-end solutions across the entire vehicle ownership lifecycle. These include vehicle financing, insurance, aftersales services, and repair & maintenance services.
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