Barclays Bullish on Auto Dealer Stocks Amid Resilient Market Demand
Barclays analyst John Babcock highlights the enduring strength of the U.S. auto dealership sector, valued at $2.95 trillion and projected to grow at a 4.5% CAGR to $3.68 trillion by 2030. The industry's resilience stems from consistent demand for personal vehicles and a robust Parts & Service segment, which contributes 40-45% of gross profits.
Dealerships benefit from recession-resistant repair needs and ongoing industry consolidation through M&A. Babcock notes attractive valuations and a track record of shareholder returns, though specific stock picks were truncated in the original text.