Dealer Preview: Penske top pick into 2Q earnings

Research evidence excerpt

Dealer Preview: Penske top pick into 2Q earnings

Accessible version

Automotive Industry

Dealer Preview: Penske top pick into 2Q

earnings

Price Objective Change

2Q revisions reflect lower P&S but stable GPUs 09 July 2026

Ahead of 2Q results for the publicly traded dealers we are tweaking estimates to reflect Equity

lower same-store used units and LSD% Parts & Services (P&S) growth, offset by stable Global

GPUs and better SG&A leverage sequentially following weather disruption in 1Q. We Autos/Car Manufacturers

model same-store new unit sales of -2.3% YoY on avg., mostly unchanged from our prior

Alexander Perry

estimate and below Wards industry retail of +0.8% YoY. Dealer commentary generally Research Analyst

pointed to April as the softest month from a tough comp from pre-buying ahead of BofAS +1 646 855 1365

perceived price increases last year, while May and June improved while also highlighting aperry3@bofa.com

variation across states, including Texas softness for GPI (32% of new unit sales). On Jack Joyce, CFA

used, we lower same-store units to -2.3% YoY on avg., reflecting constrained supply Research Analyst BofAS

especially in value autos before off-lease supply builds in 3Q/4Q. We also lower same- +1 646 556 2798

store P&S revenue growth to LSD%, with revisions at GPI, ABG, AN, and PAG, as the jack.joyce@bofa.com

group laps tougher warranty/collision comparables and fewer recall tailwinds versus last

year. The U.K. market improved again in 2Q, with new unit sales +14.7%, which is a

sequential acceleration from +5.9% in 1Q, and should support results at PAG, LAD, and

GPI. We raise our POs for LAD, PAG, SAH, and OPLN to reflect higher peer multiples. Stock symbol key

Asbury Auto ABG

3Q outlook: SAAR resilient, but lapping tough EV compare AutoNation, Inc. AN