
Sonic Automotive (SAH) Stock Forecast & Price Target
Sonic Automotive (SAH) Analyst Ratings
Bulls say
Sonic Automotive's diverse revenue streams, with a robust franchise business contributing significantly to stability, position the company favorably for long-term growth, particularly as it expands its EchoPark used-vehicle segment. The new vehicle sector is performing well, driven by effective inventory management and strong relationships with luxury manufacturers, which enhances resilience in a variable market environment. Additionally, the anticipated recovery in used auto demand, coupled with EchoPark's unique pricing and profit strategies, is expected to drive durable market share gains, further bolstering Sonic Automotive's financial outlook.
Bears say
Sonic Automotive's financial outlook is tempered by lowered growth estimates for its EchoPark division, now projected at only 1% year-over-year, contrasted with previous guidance, indicating potential struggles in the used vehicle market amid fluctuating demand. The company's enterprise value reflects a significant discount at a valuation of $7.4 billion, with the franchise business valued at $6.8 billion based on a lower EBITDA multiple compared to its peers. Persistent volatility in used auto supply and demand, along with disappointing quarterly performances, contribute to an overall adverse sentiment regarding Sonic Automotive's immediate financial prospects.
This aggregate rating is based on analysts' research of Sonic Automotive and is not a guaranteed prediction by Public.com or investment advice.
Sonic Automotive (SAH) Analyst Forecast & Price Prediction
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