AutoNation (NYSE:AN) should continue to outperform in 2022, according to an upgrade from Seaport Global Securities on Monday.

The firm indicated that while its upgrade from “Neutral” to “Buy” may appear belated in context of the stock’s outperformance year-to-date and strong earnings, room to run remains ahead of the stock.

“Given our view of a (further) prolonged outsized earnings cycle, industry sales that are already at recessionary levels, deep pent-up demand, sparse inventories, extremely depressed valuation/deep double-digit cash flow yield, and our confidence in new CEO Manley, we find AN shares too compelling NOT to upgrade,” the upgrade note read. “Given our long-bullish view on the Franchise Auto Retailers, as well as our favorable bias towards AN shares, our upgrade shouldn’t be a surprise to many investors.”

A $180 price target was assigned to the stock alongside the upgrade, suggesting significant upside from Friday’s closing price of $117.07. Shares of the Florida-based automotive retailer rose 0.51% in premarket hours on Monday.

Read more on the company’s latest earnings release and its slowdown in new vehicle sales amid supply chain problems.