
Sonic Automotive (SAH) Stock Forecast & Price Target
Sonic Automotive (SAH) Analyst Ratings
Bulls say
Sonic Automotive reported a substantial increase in its gross margin, rising by 0.8% year-over-year to reach 50.8% in the fourth quarter of 2024, which indicates improved operational efficiency. Additionally, the company experienced significant growth in finance and insurance (F&I) performance, with gross profit per unit (GPU) increasing by $564 year-over-year to $2,927, coupled with a 14% year-over-year rise in F&I revenue/gross profit. The service and parts segment also contributed positively, with revenue up 10.5% year-over-year and a 12.2% increase in gross profit, reinforcing the overall financial health and growth potential of Sonic Automotive.
Bears say
Sonic Automotive experienced notable declines in its used vehicle gross profit per unit (GPU) and store count, reflecting challenges in inventory management and reduced retail transaction volumes. The company's performance showed a 5.1% year-over-year decrease in used vehicle units for the fourth quarter of 2024, alongside a cautious outlook from management regarding revenue growth and profitability. Additionally, EBITDA is projected to be negative in both the first and fourth quarters of 2025, further indicating anticipated financial stress amid ongoing operational challenges.
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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