Lithia Motors, Inc. (NYSE:LAD) is a leading automotive retailer in the U.S., providing a comprehensive range of services such as new and used vehicle sales, financing, warranties, insurance, and automotive repair and maintenance. The company operates through multiple segments and maintains a strong online presence, making it a significant player in the automotive retail industry.

The consensus price target for Lithia Motors has seen some fluctuations over the past year. Last month, the average price target was $374, reflecting the latest analyst sentiment. This is a decrease from the previous quarter's target of $414.5, indicating a shift in analysts' outlook. A year ago, the target was $390.17, showing varying levels of optimism over time.

Despite the recent decrease in the average price target, Lithia Motors is expected to experience earnings growth. Wells Fargo has set a price target of $350, suggesting confidence in the company's growth potential. This aligns with the company's strategic shift towards dividends and aggressive share repurchases, moving away from acquisitions.

In the third quarter of 2025, Lithia Motors reported a 5% increase in revenue and a 17% rise in adjusted earnings per share (EPS). The company also executed share buybacks amounting to 5.1% of its shares at an average price of $312. These actions indicate a transition to a more mature capital strategy, which could positively impact the stock's performance.

Lithia Motors' stock has declined by 11.5% since its last earnings report 30 days ago. Despite this downturn, the current price target set by Wells Fargo remains at $350, indicating potential confidence in the company's long-term performance. Investors should consider these factors, along with upcoming financial results, when evaluating Lithia Motors' stock.