Cheat sheet: What you need to know about about the great car dealer software hack
Written by Emily J. Thompson, Senior Investment Analyst
Source: Yahoo Finance
- CDK Global Cyberattack: CDK Global, a software provider for dealerships, experienced a cyberattack causing system outages at 15,000 dealerships in the US and Canada.
- Impact on Dealers and Customers: The cyberattack has led to delays in car purchases, service disruptions, and challenges in processing transactions, affecting both dealers and customers negatively.
- Response from Dealerships: Dealerships are resorting to manual processes to continue operations, but the outage is causing strain and financial uncertainty for dealership groups like AutoNation and Lithia Motors.
- Consideration of Alternatives: Dealerships affected by CDK Global's outage may consider switching to other software providers due to trust issues and poor communication during the crisis.
- Future Outlook: The longer the outage persists, the more significant the impact on dealerships, especially during a crucial sales period at the end of the quarter.
Analyst Views on LAD
Wall Street analysts forecast LAD stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LAD is 388.00 USD with a low forecast of 310.00 USD and a high forecast of 500.00 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.
8 Analyst Rating
6 Buy
2 Hold
0 Sell
Strong Buy
Current: 334.940
Low
310.00
Averages
388.00
High
500.00
Current: 334.940
Low
310.00
Averages
388.00
High
500.00
About LAD
Lithia Motors, Inc. is a global automotive retailer. The Company is engaged in providing an array of products and services throughout the vehicle ownership lifecycle. The Company offers convenient experiences through its comprehensive network of physical locations, e-commerce platforms, captive finance solutions and other synergistic adjacencies. The Company operates through two segments: Vehicle Operations and Financing Operations. Its Vehicle Operations consist of all aspects of its auto merchandising and service operations, including its retail automotive, recreational vehicles, and motorcycle franchises that sell new vehicles, used vehicles, parts, repair and maintenance services, and vehicle finance and insurance products. Its Financing Operations segment provides financing to customers buying and leasing retail vehicles from its Vehicle Operations. It operates approximately 464 locations representing 52 brands across the United States, the United Kingdom, and Canada.
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.
