7/23/2010- Morgan Stanley analysts are raising their estimates and price target for AutoNation (NYSE:AN) following a solid Q2 that was in line with their street-high view.
Analysts Ravi Shanke, Adam Jonas and Yejay Ying said, "We note that our view on forward operating results at AN remains mostly unchanged and our higher estimates/price target are driven by a lower share count, following aggressive buybacks in 2Q/3Q (current share count is 146 mm shares vs. 171 mm at the end of 1Q). We now expect 2010e EPS of $1.60 vs. $1.55 before and 2011e EPS of $2.00 vs. $1.85, both of which remain well ahead of consensus. Our 2010 revenue estimate ticks up to $12.8 bn from $12.7 mm before, driven by continued strength in used vehicles."
The bank maintained its overweight rating for the stock.