LA LAD Lithia Motors Loading... : Bullish and Bearish Analyst Opinions

Lithia Motors trades at ~8.9x forward P/E with its finance arm (Driveway Finance Corp) turning its first profitable year at $75M. The profitable finance arm adds a high-margin recurring revenue stream, and management's aggressive 11.4% share buyback signals strong internal conviction in the valuation gap. A deeply discounted auto retailer with significant upside to fair value estimates (Morningstar FV $387) and strong buyback support. A slowdown in consumer auto spending or rising defaults in their newly profitable finance arm.