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Lithia Motors downgraded to hold amid rising economic risks and auto loan delinquencies.

Analyst Insights
23 Oct 2026
Seeking Alpha
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Bearish
Lithia Motors downgraded to hold amid rising economic risks and auto loan delinquencies.

Lithia Motors has been downgraded from a 'buy' to a 'hold' rating due to increasing economic risks and higher auto loan delinquencies. While the company's revenue growth is largely driven by acquisitions, profitability per vehicle, especially for new cars, is under pressure. The company carries a significant net debt of $15.77 billion, making its valuation less attractive despite low cash flow multiples, with an EV/EBITDA ratio of 13.4x. Although the aftermarket and used vehicle segments remain strong, macroeconomic challenges and rising interest rates suggest caution for further stock upside.

Lithia Motors and its recent downgrade provide context for the Consumer Cyclical sector's performance on Pluang as of Oct 23, 2026 09:01 WIB. Out of 134 priced US stocks in this sector, 91 advanced while 43 declined. Notable movers include DHI (D R Horton Inc) up 6.50% at USD 148.02 with a typical hold time of 47 days, HOG (Harley-Davidson Inc) rising 6.47% at USD 29.11 despite 100% sell order activity and a hold time of 93 days, and ZGN (Ermenegildo Zegna N.V.) gaining 6.39% at USD 13.74 with 100% buy order activity and a short hold time of 4 days. The most notable figure is the 6.50% gain by DHI.

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