BancBoston Reiterates Buy and Raises Estimates On Lithia Motors
5 March 1999
BancBoston Robertson Stephens Reiterates Buy and Raises Estimates On Lithia Motors
SAN FRANCISCO, March 5 -- The following is being issued by
BancBoston Robertson Stephens, a member of the National Association of
Securities Dealers, CRD number 41271:
BancBoston Robertson Stephens senior automobile services/financial
services analyst Jordan Hymowitz today reiterated his Buy rating and raised
estimates on Lithia Motors, Inc. , after the company announced its
intent to acquire $390 million of Doug Moreland dealership group.
Lithia Motors, headquartered in Medford, Ore., is the nation's thirteenth
largest auto retailer. Not including the Doug Moreland acquisition, the
company sells and services 23 brands of new and used vehicles from 28
dealerships.
"Lithia is our favorite stock at current price levels. We are reiterating
our Buy rating on the stock, with a target price of $28 per share," said
Hymowitz. "After its Doug Moreland acquisition announcement, we are raising
our calendar year 1999 earnings per share estimate to $1.40 and establishing a
calendar 2000 estimate of $1.60 per share. Our estimates include no
incremental acquisitions, and the deal is expected to close early in third
quarter 1999.
"The Doug Moreland deal represents Lithia's first 'platform' acquisition
as a public company and a significant step in the company's continued
expansion," said Hymowitz.
Clients interested in receiving more information should contact their
salesperson at 415-781-9700.
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