AutoNation (AN) Stock Forecast & Price Target

AutoNation's revenue for 2024 is projected to be approximately $27 billion, supported by a diverse portfolio of over 240 dealerships and 52 collision centers. The company's success in premium luxury vehicle sales, which saw a year-over-year increase of 4.9%, along with a 3.5% rise in import unit sales, underscores robust demand and an expanding market presence. Notably, the growth of Webuyyourcar.com, which now accounts for about 33% of acquired units, reflects an effective strategy in enhancing vehicle acquisition and inventory management.

AutoNation is projected to experience a significant year-over-year EBITDA decline of 12.9% in the fourth quarter of 2025, indicating deteriorating financial performance. Additionally, the estimated new gross profit per unit (GPU) for fiscal year 2026 is projected to fall to $2,200, down $370 from the previous year, reflecting challenges in the automotive sales environment. Overall, unless AutoNation can achieve a considerably low valuation, the current earnings estimates appear to be substantially below consensus, casting a negative outlook on the stock.