Sonic Automotive (SAH) Stock Forecast & Price Target
Sonic Automotive (SAH) Analyst Ratings
Bulls say
Sonic Automotive demonstrated notable financial strength in 4Q24, evidenced by a gross margin increase of 0.8% year-over-year to 50.8%, alongside a substantial 12.2% year-over-year growth in service and parts gross profit. Furthermore, finance and insurance (F&I) gross profit per unit (GPU) was robust, reaching $2,927, which illustrated a significant yearly increase of $564 and a sequential rise of $66. With total revenue for 2024 reported at $14.2 billion and continued improvement in financial metrics such as F&I revenue growth of 14% year-over-year, Sonic Automotive reflects a strong operational performance with a positive outlook for future growth.
Bears say
Sonic Automotive's financial outlook is marked by several concerning trends, including a $200 sequential and $49 year-over-year decline in used vehicle gross profit per unit (GPU), which has fallen to $48 in 4Q24. Additionally, the average number of EchoPark stores decreased significantly from 25 in 4Q23 to 18 in 4Q24, reflecting a cautionary approach by management amid inconsistent inventory levels and a 5.1% year-over-year drop in used vehicle units for the same quarter. The company's updated consolidated model is projecting only 2% revenue growth and flat gross profits year-over-year, trailing behind management's guidance, and anticipates negative EBITDA for both 1Q25 and 4Q25, primarily due to seasonality challenges.
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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