Lithia Motors Inc Class A
LAD: XNYS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| $811.00 | Gnxfzq | Hsbtfrkx |
We See Lithia as the Most Exciting Growth Story in Our Auto Dealer Coverage
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Business Strategy and Outlook
Lithia Motors' business model is strong because it is the only large publicly traded dealer operating in rural markets. These markets are unattractive to larger public dealers, as their management teams have no interest in small cities and they have import and luxury brand mixes more favorable to suburban markets. Nationwide, many Lithia brand stores have no competitors within 100 miles, giving Lithia pricing power.