Benchmark analyst Michael Ward initiated coverage of Lithia Motors with a Buy rating and $185 price target, noting that the company's variable gross profit per unit, Parts & Services performance, used vehicle market gains, and cost performance have all been at the high-end of the group recently and he expects "more of the same" in 2020 and 2021.

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.