6 Analysts Assess Sonic Automotive: What You Need To Know

6 analysts have shared their evaluations of Sonic Automotive SAH during the recent three months, expressing a mix of bullish and bearish perspectives.

The following table summarizes their recent ratings, shedding light on the changing sentiments within the past 30 days and comparing them to the preceding months.

Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $77.67, a high estimate of $94.00, and a low estimate of $64.00. This current average has decreased by 11.99% from the previous average price target of $88.25.

Understanding Analyst Ratings: A Comprehensive Breakdown

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.

Key Insights:

• Action Taken: Analysts adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Sonic Automotive. This information provides a snapshot of how analysts perceive the current state of the company.
• Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Sonic Automotive compared to the broader market.
• Price Targets: Analysts navigate through adjustments in price targets, providing estimates for Sonic Automotive's future value. Comparing current and prior targets offers insights into analysts' evolving expectations.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Sonic Automotive's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on Sonic Automotive analyst ratings.

Discovering Sonic Automotive: A Closer Look

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: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Over the 3M period, Sonic Automotive showcased positive performance, achieving a revenue growth rate of 7.9% as of 31 March, 2025. This reflects a substantial increase in the company's top-line earnings. When compared to others in the Consumer Discretionary sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: Sonic Automotive's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 1.93%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Sonic Automotive's financial strength is reflected in its exceptional ROE, which exceeds industry averages. With a remarkable ROE of 6.56%, the company showcases efficient use of equity capital and strong financial health.

Return on Assets (ROA): Sonic Automotive's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 1.2% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: Sonic Automotive's debt-to-equity ratio is below the industry average. With a ratio of 3.71, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

What Are Analyst Ratings?

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

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.

If you want to keep track of which analysts are outperforming others, you can view updated analyst ratings along withanalyst success scores in Benzinga Pro.

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.