
Sonic Automotive (SAH) Stock Forecast & Price Target
Sonic Automotive (SAH) Analyst Ratings
Bulls say
Sonic Automotive reported a gross margin increase of 0.8% year-over-year, reaching 50.8% in the fourth quarter of 2024, signaling effective cost management and operational efficiency. The company's finance and insurance (F&I) gross profit per unit improved significantly, with a year-over-year increase of $564, reflecting a strong performance in this revenue segment. Furthermore, service and parts revenue rose by 10.5% year-over-year, contributing to the overall positive financial momentum and highlighting the company’s resilience in the competitive automotive market.
Bears say
Sonic Automotive has experienced a decline in used vehicle gross profit per unit (GPU), which decreased by $200 sequentially and $49 year-over-year to $48 in the fourth quarter of 2024, reflecting challenges in the used vehicle market. Furthermore, the average store count for EchoPark fell by 28%, from 25 stores in the fourth quarter of 2023 to 18 stores in 2024, indicating difficulties in maintaining operational scale and revenue generation. Overall, the company's cautious outlook is underscored by expected flat gross profits year-over-year, alongside anticipated negative EBITDA for the first and fourth quarters of 2025 due to seasonal factors, signaling potential operational and financial headwinds.
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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