Penske Automotive (PAG): Strengthening U.S. Scale with Strategic Acquisitions

Penske Automotive Group Inc. (NYSE:PAG) is one of the champion used-car stocks to buy, according to hedge funds. On January 26, Penske Automotive Group Inc. (NYSE:PAG) affirmed plans to grow its beingness successful Florida with the acquisition of 2 Lexus dealerships.

The institution has inked an statement to get Lexus of Orlando and Lexus of Winter Park successful the Orlando metropolitan country of cardinal Florida. With the acquisition, the institution is poised to adhd $450 cardinal successful annualized revenue. It is to money the acquisition utilizing currency travel from operations and availability nether its US recognition agreement.

North American Operations Officer Rich Shearing said, “The acquisition of these premier Lexus dealerships represents different strategical summation to the Penske Automotive Group portfolio. The acquired dealerships volition grow the Company’s standard successful 1 of the fastest increasing states successful the state portion leveraging the Company’s existing infrastructure successful Central Florida.”

Earlier connected January 9, Benchmark reiterated a Buy standing and a $190 terms people connected Penske Automotive Group. The affirmative stance comes contempt expert Michael Albanese making “modest reductions” to forecasts for caller conveyance sales, aftersales, and G&A leverage for the automotive retailer. The probe steadfast expects the institution to present EBITDA of $341 cardinal and net per stock of $3.10 for Q4.

Penske Automotive Group, Inc. (NYSE:PAG) is simply a diversified planetary proscription services institution that operates arsenic 1 of the world’s premier automotive and commercialized motortruck retailers. It sells caller and utilized vehicles, provides attraction and repair services, and offers financing and security products crossed the US, UK, Canada, Germany, Italy, and Japan.

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Disclosure: None. This nonfiction is primitively published at Insider Monkey.