08:25 AM EDT, 04/26/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our 12-month target by $10 to $190, based on a '25 P/E of 8.9x, a discount to AN's 10-year mean forward P/E of 10.3x. We maintain our adjusted EPS estimates of $20.25 for '24 and $21.25 for '25. AN posts Q1 adjusted EPS of $4.49 vs. $6.07 (-26%), ahead of the $4.25 consensus. The beat was driven by stronger-than-expected margins, as sales rose 1.4% to $6.49B ($20M below consensus) but gross margin contracted 160 bps to 18.5% (40 bps above consensus). AN's high-margin Parts and Service business was a key driver, with segment gross profit rising 9% and gross margin expanding 50 bps to 47.4%. AN also announced the authorization of an additional $1B of share repurchases, which we consider a big positive and means that AN's staggering recent level of buybacks and share count reduction should continue (quarter-end total liquidity was $1.7B). Current consensus estimates appear low and AN boasts one of the industry's best earnings track records (only one bottom line miss since 2018).