
Sonic Automotive (SAH) Stock Forecast & Price Target
Sonic Automotive (SAH) Analyst Ratings
Bulls say
Sonic Automotive demonstrated a notable increase in financial performance in 4Q24, with gross margin rising 0.8% year-over-year to 50.8%, highlighting ongoing operational efficiency. Additionally, the company reported significant growth in F&I (finance and insurance) revenue, increasing 14% year-over-year, and service and parts revenue grew by 10.5%, indicating strong demand across multiple revenue streams. The upward trends in gross profit margins and revenue generation across various segments, coupled with improved SG&A as a percentage of gross profit, bolster a positive outlook for Sonic Automotive's financial health.
Bears say
Sonic Automotive experienced a decline in used vehicle gross profit per unit (GPU), which fell by $200 sequentially and $49 year-over-year to $48 in 4Q24, contributing to a challenging financial environment. The average number of EchoPark stores decreased from 25 in 4Q23 to 18 in 4Q24, indicating operational downsizing amidst poor performance, while used vehicle units also saw a year-over-year decrease of 5.1% in 4Q24. Furthermore, forward-looking projections highlight caution in the overall revenue forecast, with expectations of just 2% revenue growth and flat gross profits year-over-year, alongside anticipated negative EBITDA for the beginning and end of 2025 due to seasonal trends, reflecting ongoing operational difficulties.
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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