
ABG Stock Forecast & Price Target
ABG Analyst Ratings
Bulls say
Asbury Automotive Group is supported by an operating model that can translate modest margin gains into outsized earnings growth, with $3 billion in annual gross profit and every 1% SG&A-to-gross-profit improvement worth about $30.2 million and roughly $1.20 in EPS. The company’s 1Q26 SG&A as a percentage of gross profit was 68.6%, and management is guiding below 64% by exiting 2026 with low 60s in play for 2027, while the Tekion rollout across more than half of its 158 stores should improve labor and process efficiency. Its 1Q26 leverage ratio of 3.6x, ~$400 million-plus in annual FCF, and opportunistic asset sales and buybacks add another layer of earnings accretion, while the July 2025 Chambers acquisition and used-car optimization create additional upside.
Bears say
Asbury Automotive Group is facing a negative outlook because its same-store new unit, used unit, service and parts revenue, and gross profit growth have trailed the group over the last three years, while its shares still screen at just 8.3x/7.4x estimated 2026/2027 EPS. Earnings have also been volatile, with a forecast 7.2% EPS decline in 2026 that would be worst in the group, reflecting Tekion DMS transition costs, non-cash Total Care Auto headwinds, and macro slowdown risk. Although cost savings may emerge later, the company’s leveraged balance sheet, dependence on acquisitions, and exposure to margin compression, higher taxes, and cyclical demand keep fundamentals pressured.
This aggregate rating is based on analysts' research of Asbury Automotive Group and is not a guaranteed prediction by Public.com or investment advice.
ABG Analyst Forecast & Price Prediction
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