Sonic Automotive (SAH) Stock Forecast & Price Target

Sonic Automotive is viewed favorably because its EchoPark segment is showing durable growth, with retail units up 22% and FY26 unit and adjusted EBITDA guidance moving higher, reinforcing confidence in a scalable used-vehicle expansion story. At the same time, franchise vehicle margins held up better than feared and new and used GPU guidance was raised, which offsets industry-wide fixed operations pressure and elevated SG&A that still weigh on earnings. With 2025 revenue of $15.2 billion, EchoPark contributing $2.1 billion, and Texas and California making up 51% of sales, the company’s concentration in large markets and strong luxury/import mix support a resilient fundamental profile.

Sonic Automotive is weighed down by elevated SG&A, where customer costs, technology spending, and travel outpaced gross profit, limiting operating leverage and making near-term savings look modest despite talk of belt tightening. Its high-margin fixed operations have disappointed, same-store gross profit growth has slowed, FY26 guidance was reduced, and EchoPark remains hard to value as heavier EV and higher-mileage mix pressure warranty attachment and finance-and-insurance profitability. Even with 2025 revenue of $15.2 billion and EchoPark at $2.1 billion, investors may continue to assign limited credit to the complex mix and discount the stock on consolidated earnings because profitability visibility remains weak.