UBS initiated coverage of Lithia & Driveway with a Buy rating and $348 price target. Coverage is being initiated on the six major public auto dealer groups with a cautiously optimistic view, favoring companies with cost-saving potential, turnaround opportunities, capital allocation upside, and/or strong operators whose strengths are not fully reflected in their stock prices, the analyst tells investors in a research note. The firm says Lithia & Driveway has a \"meaningful\" cost improvement story.
