Upcoming Dealership Opening: Group 1 Automotive is set to open a new Mercedes-Benz dealership in South Austin, featuring an 80,000-square-foot facility and 28 EV charging stations, highlighting its commitment to luxury automotive retail.
Stock Performance: The company's shares have increased by 28% over the past year and 13% since January, indicating strong market performance and management's focus on expansion and customer experience.
Valuation Insights: Analysts suggest that Group 1 Automotive may be slightly undervalued based on community consensus, but a discounted cash flow model indicates potential overvaluation, raising questions about future growth expectations.
Investment Considerations: While there are opportunities for profit expansion through digital investments and improved efficiencies, challenges from competition and the shift to electric vehicles could impact the company's growth outlook.
Wall Street analysts forecast GPI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GPI is 481.25 USD with a low forecast of 435.00 USD and a high forecast of 510.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
5 Analyst Rating
Wall Street analysts forecast GPI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GPI is 481.25 USD with a low forecast of 435.00 USD and a high forecast of 510.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Buy
1 Hold
0 Sell
Strong Buy
Current: 402.620
Low
435.00
Averages
481.25
High
510.00
Current: 402.620
Low
435.00
Averages
481.25
High
510.00
Barclays
Overweight -> NULL
downgrade
$510 -> $490
2026-01-21
New
Reason
Barclays
Price Target
$510 -> $490
AI Analysis
2026-01-21
New
downgrade
Overweight -> NULL
Reason
Barclays lowered the firm's price target on Group 1 Automotive to $490 from $510 and keeps an Overweight rating on the shares. The firm adjusted targets in the auto retail group as part of its Q4 outlook. It broadly lowered estimates across the sector on "soft" auto sales unit pressures. However, trade checks suggest the used vehicle market has good momentum, the analyst tells investors in a research note.
Evercore ISI
Outperform
initiated
$500
2026-01-20
New
Reason
Evercore ISI
Price Target
$500
2026-01-20
New
initiated
Outperform
Reason
Evercore ISI initiated coverage of Group 1 Automotive with an Outperform rating and $500 price target. The firm believes about 80% of dealer sentiment may be driven by new car SAAR, even though it drives just about 20% of profits, adding that it is "bullish on SAAR." In addition to just SAAR, the firm sees a multiyear runway for dealers on capital allocation, "Defensive cyclical" EPS power and car-parc driven strength, the analyst tells investors.
Unlock Full Analyst Thesis， Get the complete breakdown of rating reason for GPI
Unlock Now
Morgan Stanley
initiated
$460
2025-12-08
Reason
Morgan Stanley
Price Target
$460
2025-12-08
initiated
Reason
Morgan Stanley assumed coverage of Group 1 Automotive with an Overweight rating and $460 price target. The firm adjusted ratings in the autos and shared mobility group as part of its 2026 outlook following a change in analysts. Morgan Stanley is "leaning more cautious" into next year, saying the electric vehicle "winter" will sustain through 2026. This is counterbalanced by a "moderately more positive" outlook on internal combustion engines and hybrids, the analyst tells investors.
Barclays
John Babcock
Overweight
initiated
$510
2025-11-11
Reason
Barclays
John Babcock
Price Target
$510
2025-11-11
initiated
Overweight
Reason
Barclays analyst John Babcock initiated coverage of Group 1 Automotive with an Overweight rating and $510 price target. The firm rolled out coverage on the auto retail sector with a neutral view. Sector fundamentals are mixed, but the dealers offer "resiliency and strong shareholder returns," the analyst tells investors in a research note. Barclays is constructive on the growth outlook for the digital auction marketplaces as it sees the companies gaining shared from physical auctions.
About GPI
Group 1 Automotive, Inc. is an automotive retailer. It operates through two segments: the U.S. and the U.K. Through its dealerships and omnichannel platform, the Company sells new and used cars and light trucks; arranges related vehicle financing; sells service and insurance contracts; provides automotive maintenance and repair services; and sells vehicle parts. It owns and operates about 263 automotive dealerships, 335 franchises, and 39 collision centers in the United States and the United Kingdom that offer 35 brands of automobiles. It sells retail used vehicles directly to its customers at its dealerships and via AcceleRide and wholesale its used vehicles at third-party auctions. Its operations are located in areas including Texas, Massachusetts, Oklahoma, California, Georgia, New Mexico, Maine, New Jersey, New Hampshire, Florida, South Carolina, Louisiana, Kansas, New York, Maryland, and others. It also offers third-party finance, vehicle service, and insurance products.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
