Q4 2024 Group 1 Automotive Inc Earnings Call

Written by Emily J. Thompson, Senior Investment Analyst

GPI-2.66%

Source: Yahoo Finance

Updated: Jan 30 2025

0mins

Source: Yahoo Finance

Financial Performance Overview: Group 1 Automotive reported record revenues of $5.5 billion for Q4 2024, with adjusted net income of $133.9 million, driven by strong performance in new vehicle sales and aftersales services, despite challenges in the UK market due to integration efforts and macroeconomic conditions.
UK Market Integration and Challenges: The company is actively integrating its recent acquisition of Inchcape's retail dealerships in the UK, facing operational disruptions but optimistic about future improvements; however, they anticipate ongoing challenges related to government mandates on electric vehicles impacting sales and profitability.

GPI

$391.91+Infinity%1D

Analyst Views on GPI

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

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.

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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.