
Sonic Automotive (SAH) Stock Forecast & Price Target
Sonic Automotive (SAH) Analyst Ratings
Bulls say
Sonic Automotive’s franchise business is a robust foundation that supports consistent growth in its EchoPark segment, contributing significantly to the overall revenue. The company recorded $14.2 billion in revenue for 2024, with a notable emphasis on luxury and import vehicles which contribute approximately 86% of new-vehicle revenue, enhancing its market resilience amidst economic uncertainty. Furthermore, expectations for a durable recovery in used vehicle demand, paired with EchoPark’s targeted financing model, position the company favorably for capturing increased market share and driving long-term profitability.
Bears say
Sonic Automotive's financial outlook is negatively impacted by its reliance on the fluctuating used vehicle market, demonstrated by uneven performance and unexpected results from its EchoPark stores, which have shown volatility in supply and demand. The company's current enterprise value is assessed at $7.4 billion, with a significant discount applied to its EchoPark division due to concerns over near-term execution and market conditions. Additionally, estimates for EchoPark's growth have been lowered to only 1% year-over-year, reflecting caution amid industry-wide inventory challenges and consistent demand volatility, thereby contributing to a bearish perspective on future earnings potential.
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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