Nov. 6 at 8:29 PM
Morgan Stanley reaffirmed its Overweight rating on PAG, though it trimmed its price target to
$180 from
$190. The firm said that while GPU demand is continuing to normalize, it should stabilize at levels higher than those seen in 2019, supporting the company’s medium-term outlook.
According to the note, PAG’s diversified business model offers a solid buffer against cyclical headwinds. Its strategic capital allocation, balanced portfolio of luxury brands, and exposure to affluent consumers remain key strengths that help sustain profitability even in a softer macro environment.
Morgan Stanley forecasts FY2025 EPS of
$13.98 and FY2026 EPS of
$14.58, slightly below its previous projections. The revision reflects modest headwinds from product mix changes and ongoing inventory supply constraints, though the firm remains confident in PAG’s long-term fundamentals and execution strategy.
$PAG