PAG Stock Forecast & Price Target

Penske Automotive Group has demonstrated strong performance in its used vehicle business, with significant growth in gross profits over the last three quarters, reflecting increases of 20.3%, 24%, and 14.6% respectively. The company's strategic focus on its retail segment, including the Sytner Select brand, positions it well for further growth, with projections estimating a 4% increase in total used gross profits by 2025. Despite potential headwinds in new vehicle sales due to regulatory changes in the UK, Penske's robust portfolio of luxury and import brands coupled with its expanding footprint both domestically and internationally reinforces a positive financial outlook.

Penske Automotive Group faces challenges as sales for key luxury brands such as Porsche and Land Rover have experienced significant declines in the second quarter of 2025, with Porsche down 4.3% and Land Rover down 6.6% compared to substantial increases in the previous quarter. Overall, the company's sales reflect a downturn, decreasing by 4.1% after a positive rise of 6.4% in the first quarter of the same year. This shift in sales momentum for high-revenue segments raises concerns about the sustainability of Penske's financial performance and market position.