
ABG Stock Forecast & Price Target
ABG Analyst Ratings
Bulls say
Asbury Automotive Group is in a strong position to weather any potential recession due to its Service & Parts business, which is typically recession-resistant and makes up a large portion of its gross profit. The shift towards electric vehicles may pose challenges for the company's Service & Parts business, but the company's proactive capital allocation and focus on increasing efficiency through its Tekion integration bode well for its future earnings potential. Additionally, there is opportunity for growth in the used car market and the company's strong cash flow could translate into significant share repurchases in the coming years.
Bears say
Asbury Automotive Group is currently trading at a significant discount to its peer group, with a P/E ratio of just 8.3x/7.4x for 2026/2027 EPS respectively. This discount is due to earnings volatility, with a forecasted decline in EPS in 2026 compared to the group average increase. The company has a potential for 2027 double-digit earnings growth, and with management evaluating strategic alternatives for its third-party financing and insurance products sector, we believe any steps taken to accelerate the deleveraging process or repurchase shares would be well received by investors. However, the potential for a less friendly M&A environment and higher U.S. tax rates could impact the company's growth plans and profitability. Despite these headwinds, there is a potential for Asbury Automotive Group to achieve $35+ in EPS through proactive management, integration of past acquisitions, and effective capital allocation.
This aggregate rating is based on analysts' research of Asbury Automotive Group and is not a guaranteed prediction by Public.com or investment advice.
ABG Analyst Forecast & Price Prediction
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