Meetings with the top management of Group 1 Automotive Inc (NYSE:GPI) and Penske Automotive Group Inc (NYSE:PAG) highlighted industry trends in tariff responses by OEMs (original equipment manufacturers), new and used vehicle sales, as well as P&S (parts and service) trends, according to JPMorgan.

The Automotive Analyst: Analyst Rajat Gupta reiterated an Overweight rating and price target of $435 for Group 1 Automotive, while maintaining an Underweight rating and price target of $160 for Penske Automotive.

The Automotive Thesis: Both companies witnessed increased buying by OEMs (original equipment manufacturers) over the past few months, ahead of tariffs being imposed, Gupta said in the note.

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While there was a "sharp uptick' in sales during late March, the trend began to normalize into mid-April and a "new normalized run-rate" was established by mid- to late-May and into June, he added.

"Consumer health remains resilient and in-store traffic is strong as well," the analyst wrote.

Both Group 1 Automotive and Penske Automotive indicated that the used car market continues to be challenging, he further stated.

GPI, PAG Price Action: Shares of Group 1 Automotive had declined by 0.48% to $446.20, while Penske Automotive's stock was up 1.25% to $177.56 at market close on Tuesday.

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