Craig-Hallum analyst Steve Dyer raised his price target for Lithia Motors to $145 from $125 saying that despite a new vehicle market that appears to be late cycle, the company's business model is more resilient than investors give it credit for and can continue to drive EPS growth through improvements at recently acquired stores, accretive M&A, and growth in F&I, P&S and used. The analyst reiterates a Buy rating on the shares.

Craig-Hallum lowered the firm's price target on Lithia & Driveway to $310 from $350 and keeps a Buy rating on the shares. While Q1 results were negatively impacted by operational integrations of recent acquisitions, the firm was encouraged to hear management's refined focus going forward is on harvesting synergies and accelerating its share repurchases while moderating the aggressive M&A pace. Network expansion and M&A have proven to be highly strategic, synergistic and accretive, so Craig-Hallum is supportive of the strategy, but thinks the setup for the stock is better during the synergy optimization period than during the acquisition/integration period.

Reports Q1 revenue $8.56B, consensus $8.54B. New vehicle same store units grew by 3.6 %. Reports Q1 total vehicle gross profit per unit of $4,346, down $1,239. "In the first quarter, our teams responded as the industry continued to normalize inventories and profitability. We are committed to driving improvements across our business," said Bryan DeBoer, President and CEO. "Our model is diversified with our adjacencies maturing and on a path to profitability, as we continue to deliver the best experience for our customers. Responding to market conditions, we are rebalancing our capital allocation from acquisitions toward returns to our shareholders, with the long-term target of delivering $2 in EPS per billion in revenues."