Penske Automotive (PAG): Strengthening U.S. Scale with Strategic Acquisitions

Group 1 - Penske Automotive Group Inc. is recognized as one of the best used-car stocks to buy, according to hedge funds [1] - The company plans to expand its presence in Florida by acquiring two Lexus dealerships, which will add $450 million in annualized revenue [2] - The acquisition will be funded through cash flow from operations and availability under its US credit agreement [2] Group 2 - The acquisition of Lexus of Orlando and Lexus of Winter Park is seen as a strategic addition to the Penske Automotive Group portfolio, enhancing its scale in a rapidly growing state [3] - Benchmark has reiterated a Buy rating on Penske Automotive Group with a price target of $190, despite making modest reductions to forecasts for new vehicle sales and aftersales [3] - The company is expected to deliver EBITDA of $341 million and earnings per share of $3.10 for Q4 [3] Group 3 - Penske Automotive Group operates as a diversified international transportation services company, selling new and used vehicles and providing maintenance, repair, financing, and insurance products across multiple countries [4]