AutoNation (AN) Stock Forecast & Price Target

AutoNation, the second-largest automotive dealer in the United States, is projected to generate approximately $27 billion in revenue for 2024, supported by its extensive network of over 240 dealerships and 52 collision centers. The company has demonstrated a strong performance in premium luxury vehicle sales, which rose 4.9% year-over-year, alongside a 3.5% increase in import unit sales, indicating robust demand across segments. Additionally, the growth of Webuyyourcar.com, which now accounts for around 33% of acquired units, reflects AutoNation's effective expansion strategy and adaptation to market trends, bolstering its overall financial health and outlook.

AutoNation is projected to experience a significant 12.9% year-over-year decline in EBITDA for the fourth quarter of 2025, indicating potential challenges in maintaining profitability. Furthermore, the company's forecast for fiscal year 2026 suggests a decrease in new vehicle gross Profit per Unit (GPU) to $2,200, a $370 reduction compared to the prior year, which may reflect weakening demand or pricing pressure. This combination of declining EBITDA and decreasing new vehicle profit margins raises concerns about the sustainability of AutoNation's earnings, casting doubt on the attractiveness of its stock.