In the last three months, 7 analysts have published ratings on Sonic Automotive (NYSE:SAH), offering a diverse range of perspectives from bullish to bearish.
The table below summarizes their recent ratings, showcasing the evolving sentiments within the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 4 | 0 | 2 | 1 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 3 | 0 | 1 | 0 | 0 |
| 3M Ago | 0 | 0 | 1 | 1 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $83.0, a high estimate of $95.00, and a low estimate of $72.00. This current average has increased by 11.3% from the previous average price target of $74.57.
Deciphering Analyst Ratings: An In-Depth Analysis
In examining recent analyst actions, we gain insights into how financial experts perceive Sonic Automotive. The following summary outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| Michael Albanese | Benchmark | Raises | Buy | $85.00 | $80.00 |
| Adam Jonas | Morgan Stanley | Raises | Equal-Weight | $72.00 | $60.00 |
| Chris Pierce | Needham | Maintains | Buy | $95.00 | $95.00 |
| Michael Albanese | Benchmark | Raises | Buy | $80.00 | $76.00 |
| Chris Pierce | Needham | Raises | Buy | $95.00 | $74.00 |
| Rajat Gupta | JP Morgan | Raises | Underweight | $72.00 | $65.00 |
| Jeff Lick | Stephens & Co. | Raises | Equal-Weight | $82.00 | $72.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Sonic Automotive. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Analysts unravel qualitative evaluations for stocks, ranging from 'Outperform' to 'Underperform'. These ratings offer insights into expectations for the relative performance of Sonic Automotive compared to the broader market.
- Price Targets: Delving into movements, analysts provide estimates for the future value of Sonic Automotive's stock. This analysis reveals shifts in analysts' expectations over time.
Capture valuable insights into Sonic Automotive's market standing by understanding these analyst evaluations alongside pertinent financial indicators. Stay informed and make strategic decisions with our Ratings Table.
Stay up to date on Sonic Automotive analyst ratings.
Unveiling the Story Behind Sonic Automotive
Sonic Automotive is one of the largest auto dealership groups in the United States. The company has 108 franchised stores in 18 states, primarily in metropolitan areas in California, Texas, and the Southeast, plus 18 EchoPark used-vehicle stores, 16 collision centers, and 14 powersports locations. The franchise stores derive revenue from new and used vehicles plus parts and collision repair, finance, insurance, and wholesale auctions. Luxury and import dealerships make up about 86% of franchise new-vehicle revenue, while Honda, BMW, Mercedes, and Toyota constitute about 59% of new-vehicle revenue. BMW is the largest brand at about 25%. 2024's revenue was $14.2 billion, with Texas and California comprising 51% of the total. EchoPark's portion was $2.1 billion.
Sonic Automotive's Economic Impact: An Analysis
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Revenue Growth: Sonic Automotive's revenue growth over a period of 3M has been noteworthy. As of 30 June, 2025, the company achieved a revenue growth rate of approximately 5.91%. This indicates a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Consumer Discretionary sector.
Net Margin: The company's net margin is below industry benchmarks, signaling potential difficulties in achieving strong profitability. With a net margin of -1.25%, the company may need to address challenges in effective cost control.
Return on Equity (ROE): Sonic Automotive's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -4.3%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): Sonic Automotive's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of -0.77%, the company may face hurdles in achieving optimal financial performance.
Debt Management: Sonic Automotive's debt-to-equity ratio is notably higher than the industry average. With a ratio of 4.04, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.
What Are Analyst Ratings?
Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.
In addition to their assessments, some analysts extend their insights by offering predictions for key metrics such as earnings, revenue, and growth estimates. This supplementary information provides further guidance for traders. It is crucial to recognize that, despite their specialization, analysts are human and can only provide forecasts based on their beliefs.
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