AutoNation Inc. (NYSE: AN) trades around $196/share as the company navigates slower revenue growth, tighter margins, and softer industry demand. Even with its strong operational track record, the stock has leveled off as the auto retail environment normalizes after years of elevated pricing.
Recently, AutoNation highlighted stronger service and parts performance, continued share repurchases, and improved inventory positioning, which helped offset softer unit volumes. The company also advanced its used vehicle and digital retail initiatives, showing management’s focus on efficiency and long term margin stability.
This article explores where Wall Street analysts think AutoNation could trade by 2027. We pulled together consensus targets and TIKR’s Guided Valuation Model to outline the stock’s potential path. These figures reflect analyst expectations and are not TIKR’s own predictions.
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Analyst Price Targets Suggest Modest Upside
AutoNation trades near $196/share, and the latest analyst average price target is about $233/share. This implies roughly 19% upside, which fits the modest upside category. The stock may perform better if demand steadies and margins regain momentum, but expectations remain measured.
Here are the latest analyst figures based on the uploaded data:
- High estimate: ~$280/share
- Low estimate: ~$200/share
- Median target: ~$235/share
- Ratings: 5 Buys, 2 Outperforms, 6 Holds
The narrow range suggests analysts generally agree on AutoNation’s fair value. For investors, this indicates room for gains, but not a major revaluation unless operating trends improve.
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AutoNation: Growth Outlook and Valuation
AutoNation’s fundamentals appear steady, although growth expectations are softer than in past cycles.
- Revenue growth forecast: 3.4%
- Operating margins expected: 4.8%
- Shares trade at an implied 8.3x forward P E based on the valuation model
- Based on analysts’ average estimates, TIKR’s Guided Valuation Model using an 8.3x forward P E suggests about $203/share by 2027
- That implies around 5% upside, or roughly 2% annualized returns
These numbers point to a business that can compound steadily but without strong acceleration. With the stock already near its modeled fair value, future returns depend on better margin trends or an improvement in demand.
For investors, AutoNation looks more like a stable operator than a high growth story. The company can deliver consistent earnings, but stronger upside would require clearer signs of revenue recovery and improved industry affordability.
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What’s Driving the Optimism?
Several parts of AutoNation’s business remain strong enough to keep analysts constructive. The company continues to generate solid profitability from its service operations, which provides stability even when unit sales fluctuate. Share repurchases also help support earnings growth over time.
AutoNation has strengthened its digital retail approach and improved inventory management practices. These strategic moves show that management is adapting to the new auto retail landscape. For investors, these strengths suggest AutoNation is capable of maintaining financial resilience despite a softer market backdrop.
Bear Case: Slower Growth and Margin Pressure
Despite these positives, AutoNation faces meaningful challenges. Industry pricing has cooled, affordability remains a hurdle for many consumers, and sales volumes have softened compared to the peak years. These trends make it harder for the company to meaningfully expand margins.
AutoNation’s balance sheet also carries elevated leverage, which limits flexibility if conditions weaken. For investors, slower volumes and reduced pricing power may keep the stock closer to its fair value range rather than driving a strong upward move.
Outlook for 2027: What Could AutoNation Be Worth?
Based on analysts’ average estimates, TIKR’s Guided Valuation Model using an 8.3x forward P E suggests AutoNation could trade near $203/share by 2027. Since the stock already trades around $196/share, this implies about 5% upside, or roughly 2% annualized returns. This places the stock in the already priced in category unless business performance improves.
Analyst price targets offer a slightly more optimistic view. With an average target of $233/share, the stock could see around 19% upside if execution remains steady. This falls into the modest upside category and reflects confidence in AutoNation’s operational discipline and service driven profitability.
For investors, AutoNation looks like a dependable operator with stable earnings potential, but meaningful upside will require better industry affordability, stronger volumes, and improved margins. Without those drivers, returns over the next few years are likely to remain moderate.
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