Why Did Canaccord Genuity Downgrade AutoCanada’s Stock?

By Austin Angelo

Yesterday, an analyst has provided a rating update for the Services sector company, AutoCanada (TSX: ACQ). Analyst Derek Dley from Canaccord Genuity rated AutoCanada (TSX: ACQ) a Hold, setting a C$11 price target.

Dley commented:

“We are lowering our rating to HOLD (from BUY) and target price to C$11.00 (from C$27.00) following much weaker than expected quarterly results, along with sweeping management and Board of Directors changes.”

According to TipRanks.com, Dley is ranked #440 out of 4848 analysts.

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Currently, the analyst consensus on AutoCanada is a Moderate Buy with an average price target of C$18.17.

The company has a one-year high of C$26.11 and a one-year low of C$10.65. Currently, AutoCanada has an average volume of 226.8K.

AutoCanada, Inc. engages in the operation of franchised automobile dealerships. It operates through the following segments: New Vehicle Retail and Fleet; Used Vehicle Retail and Wholesale; Finance, Insurance, and Other; and Part, Service, and Collision Repair.

The company’s shares closed on Friday at C$10.75, close to its 52-week low of C$10.65.