Asbury Automotive Group Shares Surge Ahead of Analyst Target

In the latest trading session, Asbury Automotive Group Inc (Symbol: ABG) saw its shares rise above the average analyst 12-month target price of $254.17, with transactions occurring at $258.16 per share. When a stock hits an analyst’s target, the next steps often entail a decision: either downgrade the stock due to valuation concerns or elevate the target price based on positive developments. The analyst’s reaction may largely hinge on the company’s recent performance and whether the upward trend is likely to continue.

Six analysts contribute to the average target for Asbury Automotive Group Inc, but it’s essential to understand this number is merely an average. Some analysts set lower expectations, with one predicting a price of $220.00, while another forecasts as high as $305.00. The standard deviation among these predictions is $29.054, indicating variability in expectations.

The purpose of examining the average price target for ABG is to create a collective viewpoint from multiple analysts, rather than relying solely on a single expert’s opinion. As ABG trades above the $254.17 average target, investors are encouraged to reassess the company’s potential: is this current price a stepping stone to even greater heights, or have valuations stretched too far, prompting a rethink on holding shares? Below is a snapshot of the current analyst ratings for Asbury Automotive Group Inc:

The average rating in the table above ranges from 1 (Strong Buy) to 5 (Strong Sell). This analysis utilized data from Zacks Investment Research via Quandl.com. Discover the latest Zacks research report on ABG — FREE.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.