AutoNation (AN) remains focused on improving its product mix and cost cutting initiatives. The company beat the Zacks Consensus Estimate by posting higher profits in the second quarter despite difficult industry conditions.
The company addressed its cost reduction initiatives, lower interest expense, disciplined operating model and inventory management for maintaining the profits.
As such, we have upgraded the stock to an Outperform recommendation with a target price of $22.00.Zacks Investment Research
