BancBoston Robertson Stephens Reiterates Buy Rating on GPI
9 July 1999
BancBoston Robertson Stephens Reiterates Buy Rating on GPI
SAN FRANCISCO, July 8 -- 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 analyst Jordan Hymowitz
today reiterated his Buy rating on Group 1 Automotive . The
company is the seventh-largest-dealership group in the United States.
"We are reiterating our Buy rating and 12-month price target of $28 on
Group 1 Automotive," said Hymowitz. "We believe that the company will exceed
the high-end of analyst estimates, currently ranging from $0.36 to $0.40, for
the following reasons:
1. strong seasonally adjusted-sales-rate at 16.4 million units, beating
our 1999 and 2000 estimates of 15.4 million units, and
2. a 28 percent decrease in June year-over-year incentives-per-retailed
vehicle, which translates into higher dealership profitability.
"Group 1 management indicates that an additional $300 million to
$400 million of unannounced revenues from acquisitions are likely to close by
the end of this year, which is not reflected in our model," said Hymowitz.
"Such an increase in revenues would add $0.10 to our 2000 earnings-per-share
estimate."
Clients interested in receiving more information should contact their
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