Morgan Stanley cuts Group 1 target to USD 232 for Group 1 Automotive stock

Published on 10/07/2026 at 00:50 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Adjusted EPS was USD 9.61 on USD 5.4 billion revenue in second-quarter 2026. Group 1 Automotive stock had USD 2.8 billion market value October 6, 2026.

GPI, US3989051095, Illustration mit AI erstellt.

Morgan Stanley lowered its Group 1 Automotive price target from USD 300.00 to USD 232.00 and downgraded the rating from Equalweight to Underweight on October 5, 2026, according to Investing.com. The move puts execution risk, vehicle affordability and the Hennessy integration at the center of the current debate around the dealership group.

Target cut follows earnings pressure

Group 1 Automotive reported adjusted earnings per share of USD 9.61 on revenue of USD 5.4 billion for the second quarter of 2026, according to Fortune. The quarter's adjusted net income was USD 115.0 million, while gross profit reached USD 861.0 million.

The results carried a clear comparison point. Investing.com reported that adjusted earnings per share missed the USD 11.01 consensus estimate, while revenue came in below the USD 5.68 billion forecast. The gap helps explain why analysts have focused less on headline scale and more on execution through a difficult retail environment.

Rebranding and integration remain key

Management has tied near-term operating pressure to consumer affordability, used-vehicle sourcing and disruption from the United States rebranding program. The second-quarter earnings call also described the Hennessy transaction as a strategic expansion in Atlanta, with the acquired dealerships expected to generate USD 1.7 billion in annualized revenue, according to Fortune.

The operating trade-off is visible in the latest estimates. Morgan Stanley reduced its third-quarter earnings per share estimate by 11 percent and its fiscal 2027 estimate by 6 percent, according to Investing.com. For investors, the key question is whether cost actions and the Atlanta cluster can offset weaker near-term sales execution.

Stock approaches its yearly low

The NYSE quote was last at USD 236.96 on October 6, 2026 at 4:00 p.m. ET, against a 52-week range of USD 234.05 to USD 461.27 and a market capitalization of USD 2.8 billion. The next earnings report is scheduled for October 28, 2026, according to TradingView.

The Lang & Schwarz prior close was EUR 211.00 on October 6, 2026. The further course of trading is shown by the continuously updated real-time quote of Group 1 Automotive stock.