Lithia Motors Expands in Southeast with Mercedes Stores, Eyes $220 Million in Sales

Lithia Motors, Inc. (NYSE:LAD) is one of billionaire Leon Cooperman’s top stock picks with huge upside potential. Intending to increase shop density and luxury mix, Lithia Motors, Inc. (NYSE:LAD) has increased its footprint in the Southeast region on June 12 by acquiring two Mercedes-Benz stores in Jackson, MS, and Collierville, TN. This marks the first Mercedes-Benz presence by LAD in the area, which is anticipated to generate $220 million in annual sales.

Furthermore, on June 3, analysts at Goldman Sachs assumed coverage of Lithia Motors, Inc. (NYSE:LAD) with a Neutral rating and a $340 price target. One important consideration in the analysts’ judgment was the degree of uncertainty around near-term demand. Since there are a variety of potential outcomes, both positive and negative, the analysts concluded that Lithia Motors’ current risk/reward profile is balanced. They estimated that up to 12 million automobiles might have been undersold over the previous five years, pointing to the possibility of rising demand.

Lithia Motors, Inc. (NYSE:LAD) is a major automotive retailer that sells vehicles and offers associated services, such as repair, through a wide network of dealerships and online platforms.

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 More: 10 Best Magic Formula Stocks for 2025 and 10 Best Retirement Stocks to Buy According to Hedge Funds

Disclosure: None.