
Sonic Automotive (SAH) Stock Forecast & Price Target
Sonic Automotive (SAH) Analyst Ratings
Bulls say
Sonic Automotive's stable franchise business serves as a solid foundation for anticipated growth in its EchoPark segment, with franchise operations yielding significant revenues from both new and used vehicles as well as additional services. The company reported revenue of $14.2 billion for 2024, with a notable contribution of $2.1 billion from EchoPark, highlighting its strategic positioning in the automotive market. Moreover, Sonic's disciplined inventory management and strong relationships with luxury manufacturers bolster its performance amid macroeconomic uncertainty, contributing to a positive outlook for both the franchise and EchoPark businesses.
Bears say
Sonic Automotive's recent performance has been characterized by uneven results, particularly within its EchoPark segment, which has experienced two negative surprises in the past four quarters due to volatility in used vehicle supply and demand. The valuation estimates reflect a conservative outlook, adjusting EchoPark's EBITDA multiple down from 15x to 10x, along with lowered unit growth projections, signaling challenges in achieving earlier growth targets. Additionally, concerns regarding elevated inventories and increased month-to-month demand volatility further exacerbate the uncertainty surrounding Sonic Automotive's overall financial stability and growth trajectory.
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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