Goldman Sachs Raises Sonic Automotive PT To $16 (SAH)

Goldman Sachs raised its Sonic Automotive SAH price target from $15 to $16 in a research report published today. In the report, Goldman Sachs states, "4Q10 EPS of $0.30 was above our expectation of $0.28 and the Street estimate of $0.26. We are raising our 2011/2012 estimates to $1.29/$1.58 from $1.24/$1.51. We are also introducing our 2013E EPS estimate of $1.76. Our new estimates reflect (1) impact of the 4Q beat (2) a higher new unit forecast partially offset by lower used units due to a lower used-to-new ratio, and (3) modestly lower margins across all segments vs. our previous estimates." Shares of Sonic Automotive closed Tuesday at $14.86, reflecting no change from last Friday's market close.