Citi Raised Price Target for Lithia Motors, Inc. (LAD) to $378

After the company's Q1 results report, Citi raised its price objective for Lithia Motors, Inc. (NYSE:LAD) from $375 to $378 while maintaining its Buy rating.

Lithia Motors, Inc. (NYSE:LAD) is less vulnerable to U.S. tariff threats than its counterparts in the auto industry and general merchants, according to a research report from Citi. The company pointed out that only 22% of Lithia Motors, Inc. (NYSE:LAD)’s 2024 gross profit was from the sale of new cars and that 25% of its yearly income comes from UK operations that are not impacted by US tariffs.

Citi's upward adjustment shows that the company has faith in Lithia Motors, Inc. (NYSE:LAD)’s business strategy, especially its global diversity and low reliance on sales of new cars to generate gross profit.

The updated price target and increased earnings forecasts were additionally driven by the higher-than-expected share repurchase activities. These factors make Lithia Motors, Inc. (NYSE:LAD) a more resilient participant in the retail car industry, providing comparatively shielded defense against macroeconomic shocks like tariff hikes.

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