Breaking Down Sonic Automotive: 7 Analysts Share Their Views

In the preceding three months, 7 analysts have released ratings for Sonic Automotive SAH, presenting a wide array of perspectives from bullish to bearish.

In the table below, you'll find a summary of their recent ratings, revealing the shifting sentiments over the past 30 days and comparing them to the previous months.

The 12-month price targets assessed by analysts reveal further insights, featuring an average target of $81.14, a high estimate of $100.00, and a low estimate of $64.00. This current average has decreased by 3.4% from the previous average price target of $84.00.

Interpreting Analyst Ratings: A Closer Look

An in-depth analysis of recent analyst actions unveils how financial experts perceive Sonic Automotive. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

| Analyst | Analyst Firm | Action Taken | Rating |Current Price Target| Prior Price Target | |--------------------|--------------------|---------------|---------------|--------------------|--------------------| |Chris Pierce |Needham |Lowers |Buy | $74.00|$93.00 | |Michael Ward |Citigroup |Announces |Neutral | $64.00|- | |Rajat Gupta |JP Morgan |Lowers |Overweight | $65.00|$80.00 | |Chris Pierce |Needham |Lowers |Buy | $93.00|$100.00 | |Rajat Gupta |JP Morgan |Raises |Overweight | $80.00|$74.00 | |Jeff Lick |Stephens & Co. |Raises |Overweight | $92.00|$83.00 | |Chris Pierce |Needham |Raises |Buy | $100.00|$74.00 |

Key Insights:

• Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Sonic Automotive. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Delving into assessments, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings communicate expectations for the relative performance of Sonic Automotive compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of Sonic Automotive's stock. This comparison reveals trends in analysts' expectations over time.

Understanding these analyst evaluations alongside key financial indicators can offer valuable insights into Sonic Automotive's market standing. Stay informed and make well-considered decisions with our Ratings Table.

Stay up to date on Sonic Automotive analyst ratings.

Get to Know Sonic Automotive Better

Sonic Automotive is one of the largest auto dealership groups in the United States. The company has 108 franchised stores in 18 states, primarily in metropolitan areas in California, Texas, and the Southeast, plus 18 EchoPark used-vehicle stores, 16 collision centers, and 15 powersports locations. The franchise stores derive revenue from new and used vehicles plus parts and collision repair, finance, insurance, and wholesale auctions. Luxury and import dealerships make up about 86% of franchise new-vehicle revenue, while Honda, BMW, Mercedes, and Toyota constitute about 59% of new-vehicle revenue. BMW is the largest brand at about 25%. 2024's revenue was $14.2 billion, with Texas and California comprising 51% of the total. EchoPark's portion was $2.1 billion.

Sonic Automotive: A Financial Overview

Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.

Positive Revenue Trend: Examining Sonic Automotive's financials over 3M reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 8.68% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.

Net Margin: Sonic Automotive's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.5% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Sonic Automotive's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 5.64%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Sonic Automotive's ROA excels beyond industry benchmarks, reaching 1.01%. This signifies efficient management of assets and strong financial health.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 3.89.

Analyst Ratings: Simplified

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

Which Stocks Are Analysts Recommending Now?

Benzinga Edge gives you instant access to all major analyst upgrades, downgrades, and price targets. Sort by accuracy, upside potential, and more. Click here to stay ahead of the market.

This article was generated by Benzinga's automated content engine and reviewed by an editor.