Penske Automotive Snaps up Mercedes-Benz Dealership of South Charlotte
Penske Automotive (PAG) plans to expand its footprint into North Carolina, focusing on the Charlotte market. The company has reached an agreement to acquire the Mercedes-Benz dealership of South Charlotte. Once this acquisition is completed, the company will have 26 worldwide dealerships for the Mercedes-Benz brand.
The acquisition will expand Penske’s network into one of the U.S.’s largest population growth areas. It will also give it access to 70,000 square feet of facilities and 50 service bays, which should allow Penske Automotive to meet market demand.
With the acquisition, Penske Automotive is poised to strengthen its revenue base with about $150 million in annualized revenue. (See Penske Automotive stock analysis on TipRanks)
“With the completion of this acquisition, Penske Automotive Group has now added over $700 million in expected annualized revenue to its operations this year as the company drives to its target goal of achieving $1 billion in earnings before taxes in 2023,” executive Rob Kurnick stated.
Penske Automotive has carved a niche for itself as a diversified international transportation services company. It currently operates automotive and commercial dealerships in the U.S., the U.K., Canada, and Western Europe. The company also distributes commercial vehicles, diesel and gas engines.
Seaport Global Securities analyst Glenn Chin maintains a Buy rating on the stock. The analyst has raised his stock price target to $103 from $80, implying 27.10% upside potential to current levels.
Consensus among analysts is a Strong Buy based on 5 Buys. The average analyst price target of $104.40 implies 28.83% upside potential to current levels.
PAG scores 7 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to perform in line with market averages.
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