Morningstar - Lithia Motors Inc. Class A (LAD) Lithias Move Deeper Into Digital Retailing Via Shift Is Low Risk but Potentially High Reward

Report

Morningstar

David Whiston

EUR 100.00 For Business Accounts Only

Lithia's Move Deeper Into Digital Retailing Via Shift Is Low Risk but Potentially High Reward

We are not changing our Lithia fair value estimate after the company announced a $54 million investment in private startup online used car retailer Shift. Lithia will be Shift's largest shareholder and receive a seat on Shift's board. Shift is based in Silicon Valley and presently only sells in California. It expects to sell 8,000 vehicles in 2018 while Lithia in the first half of 2018 retailed 75,210 used vehicles. Shift also expects to grow its revenue over 40% this year and uses AI to procure...

13/09/2018 14 EN

Underlying

Lithia Motors Inc. Class A

Lithia Motors is a providers of personal transportation solutions. The company's segments are Domestic, Import and Luxury. The company's Domestic segment is comprised of retail automotive franchises that sell new vehicles manufactured by Chrysler, General Motors and Ford. The company's Import segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Honda, Toyota, Subaru, Nissan and Volkswagen. The company's Luxury segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by BMW, Mercedes-Benz and Lexus. The franchises in each segment also sell used vehicles, parts and automotive services, and automotive finance and insurance products.

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US5367971034 New York Stock Exchange United States

Provider

Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

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Analysts

David Whiston

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Lithia's Move Deeper Into Digital Retailing Via Shift Is Low Risk but Potentially High Reward

Moody's Ratings announces completion of a periodic review of ratings of Lithia Motors, Inc.

Vermilion Compass: Weekly Equity Strategy

Vermilion Compass: Weekly Equity Strategy

Business as Usual for No-Moat Lonza; Specialty Ingredients Carve-Out on Track for 2020

Sasol Provides Full-Year Production Update

Astra Posts Solid 2Q, Driven by Strong Cancer Drug Sales and Moving Away From One-Time Divestments

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