Stockbrokers Panmure Gordon said it anticipates a strong set of first half results from Pendragon when the UK's biggest car dealer reports its results next month.
However it said it doesn't believe a sustained recovery in the new and used car market is underway as GDP growth of more than 2% is historically required to drive this.
GDP has declined in the last three quarters.
Panmure maintained its target price of 13p per share for Pendragon stocks, and maintained a hold recommendation ahead of the results announcement.
Analyst Mike Allen, a regular speaker at AM events, said the anticipated strong performance follows Pendragon's confident first quarter statement in May, and a view that the used car market has remained resilient and its its prestige new car business should remain strong.