
Sonic Automotive (SAH) Stock Forecast & Price Target
Sonic Automotive (SAH) Analyst Ratings
Bulls say
Sonic Automotive demonstrates a strong financial foundation through its franchise operations, which ensure a stable revenue base as the company looks toward the growth potential of its EchoPark used-vehicle division. In 2024, Sonic Automotive reported revenues of $14.2 billion, with significant contributions from its franchise business and a robust $2.1 billion from the EchoPark segment, highlighting the company's diverse revenue streams. Additionally, industry analysts remain optimistic regarding a recovery in used vehicle demand and the unique positioning of EchoPark, which is expected to capture market share while maintaining competitive pricing through its innovative financing and warranty model.
Bears say
Sonic Automotive's EchoPark division is expected to experience only 1% year-over-year growth in unit sales for the second half of 2025, significantly below the management's guidance, raising concerns about future profitability given the conservative gross profit per vehicle estimate of $3,364 compared to the company’s target of $3,600. Additionally, there are heightened fears of a repeat of the challenges faced in Q4 2024, largely due to rising inventory levels and volatile month-to-month demand patterns in the used auto market, which have been echoed by competitor CarMax's recent performance. These factors contribute to a worrisome outlook for Sonic Automotive, as they may hinder revenue and profitability while the used vehicle market stabilizes from previous demand fluctuations.
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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