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.
As editor, Tim is responsible for the media content, planning and production of AM's multiple channels (AM print and digital magazines, website, social media and contributing to our events planning). He interviews and writes about as many franchised dealer groups and UK divisions of motor manufacturers as possible, to explore the issues facing UK motor retail and understand what solutions dealers and suppliers are using to overcome these.
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