Stock Price & Analysis

Based on the analysis of Asbury Automotive Group's (ABG) recent performance and market trends, the stock is currently trading near its average analyst target price of $258.33, suggesting limited upside potential. Given the strong Q4 earnings beat and subsequent price surge, it may be prudent to hold the stock rather than buy or sell at current levels.

Price Prediction for ABG Stock in 2025

Based on current trends and analysis, the price prediction for ABG stock in 2025 is $260. This prediction is supported by the stock's recent strong earnings report, where it surpassed expectations, and its potential to rebound from oversold technical indicators. However, caution is advised due to the bearish MACD signal, which may indicate limited upward movement.

The S1 support level for ABG Stock is $233.05 ,The R1 resistant level for ABG Stock is $268.76.

As of the end of day on 2025-03-14, the price of ABG Stock was $229.52.

The target price for ABG Stock according to analyst rating is 271.67, with the highest price target at 300.00 and the lowest at 255.00. Analysts have a Hold rating on ABG Stock overall.

The market cap of ABG is $4.5B.

Analysis and Insights

To determine if Asbury Automotive Group (ABG) is overvalued, we analyze its valuation metrics, financial performance, and analyst sentiment.

Valuation Metrics:

ABG's current price is 246.96. Key valuation metrics include:

• P/E Ratio: 13.39 (above the industry average of 12-15)
• EV/EBITDA: 8.86 (above the industry average of 6-8)
• P/S Ratio: 0.29 (below the industry average of 0.3-0.5)
• P/B Ratio: 1.36 (above the industry average of 1-1.2)

These metrics suggest that ABG may be overvalued compared to industry peers.

Financial Performance:

ABG has shown strong revenue growth, with Q4 revenue reaching 4.50B. However, net income has been volatile, with Q4 net income at 128.8M. The gross margin is stable at 16.5%, indicating consistent profitability.

Analyst Sentiment:

Analysts have mixed opinions. Stephens & Co. raised the price target to $260, while JP Morgan lowered it to $255. The average price target is $257.50, suggesting a 4% upside.

Conclusion:

ABG appears overvalued due to high P/E and EV/EBITDA ratios. While revenue is strong, volatile net income and high debt levels are concerns. Investors should consider waiting for a price correction or improved financial stability.

Asbury Automotive Group, Inc. is an automotive retailer company. The Company operates through two segments: Dealerships and Total Care Auto (TCA). The Company offers a range of automotive products and services, including new and used vehicles; parts and service, which includes vehicle repair and maintenance services, replacement parts and collision repair services, and finance and insurance (F&I) products, which includes arranging vehicle financing through third parties and aftermarket products, such as extended service contracts, guaranteed asset protection (GAP) debt cancellation and prepaid maintenance. The Company operates approximately 160 new vehicle dealerships, consisting of 208 franchises, representing 31 domestic and foreign brands of vehicles. Its TCA, powered by Landcar, is a provider of service contracts and other vehicle protection products, and 37 collision repair centers.

The price prediction for ABG stock by 2030 is $320. This forecast is based on current technical indicators, Fibonacci resistance levels, and analyst expectations. The stock is expected to rise due to strong market positioning and favorable industry trends.

ABG has a total of 15000 employees.