What Does Wall Street Think About Lithia Motors (LAD)?

Lithia Motors, Inc. (NYSE:LAD) is one of the best automotive stocks to buy according to hedge funds. On August 22, Benchmark Co. analyst Michael Albanese reiterated a Buy rating on Lithia Motors, Inc. (NYSE:LAD) and set a price target of $400.00.

However, on August 11, Guggenheim lowered the firm’s price target on Lithia & Driveway to $380 from $383, while keeping a Buy rating on the shares.

The firm told investors in a sector note that while a number of auto dealers reported Q2 earnings that surpassed consensus expectations, the reactions remained generally negative despite the strong results.

It added that while concerns exist about how the group would trade into an SAAR slowdown, positive inflection in sales in July and the recent pullback in the group may help “de-risk the near-term setup.”

Lithia Motors, Inc. (NYSE:LAD) operates as a global automotive retailer that offers a wide range of products and services throughout the vehicle ownership lifecycle.

The company retails new and used vehicles and also offers other services, including captive finance solutions, comprehensive fleet management services, and other synergistic adjacencies. Its operations are divided into the Vehicle Operations and Financing Operations segments.

While we acknowledge the potential of LAD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.