In the latest quarter, 10 analysts provided ratings for Sonic Automotive (NYSE:SAH), showcasing a mix of bullish and bearish perspectives.
The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 5 | 0 | 3 | 2 | 0 |
| Last 30D | 0 | 0 | 0 | 1 | 0 |
| 1M Ago | 2 | 0 | 1 | 0 | 0 |
| 2M Ago | 0 | 0 | 0 | 0 | 0 |
| 3M Ago | 3 | 0 | 2 | 1 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $83.4, a high estimate of $95.00, and a low estimate of $72.00. Witnessing a positive shift, the current average has risen by 8.03% from the previous average price target of $77.20.
Breaking Down Analyst Ratings: A Detailed Examination
The standing of Sonic Automotive among financial experts is revealed through an in-depth exploration of recent analyst actions. The summary below 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 |
|---|---|---|---|---|---|
| Rajat Gupta | JP Morgan | Raises | Underweight | $76.00 | $74.00 |
| Chris Pierce | Needham | Maintains | Buy | $95.00 | $95.00 |
| Michael Ward | Citigroup | Raises | Neutral | $82.00 | $81.00 |
| 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 adapt their recommendations to changing market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their response to recent developments related to Sonic Automotive. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Offering insights into predictions, analysts assign qualitative values, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Sonic Automotive compared to the broader market.
- Price Targets: Analysts gauge the dynamics of price targets, providing estimates for the future value of Sonic Automotive's stock. This comparison reveals trends in analysts' expectations over time.
Assessing these analyst evaluations alongside crucial financial indicators can provide a comprehensive overview of Sonic Automotive's market position. Stay informed and make well-judged decisions with the assistance of our Ratings Table.
Stay up to date on Sonic Automotive analyst ratings.
Delving into Sonic Automotive's Background
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: Financial Performance Dissected
Market Capitalization Analysis: Below industry benchmarks, the company's market capitalization reflects a smaller scale relative to peers. This could be attributed to factors such as growth expectations or operational capacity.
Revenue Growth: Sonic Automotive displayed positive results in 3M. As of 30 June, 2025, the company achieved a solid revenue growth rate of approximately 5.91%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company surpassed expectations with a growth rate higher than the average among peers in the Consumer Discretionary sector.
Net Margin: Sonic Automotive's net margin falls below industry averages, indicating challenges in achieving strong profitability. With a net margin of -1.25%, the company may face hurdles in effective cost management.
Return on Equity (ROE): Sonic Automotive's ROE is below industry averages, indicating potential challenges in efficiently utilizing equity capital. With an ROE of -4.3%, the company may face hurdles in achieving optimal financial returns.
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: The company faces challenges in debt management with a debt-to-equity ratio higher than the industry average. With a ratio of 4.04, caution is advised due to increased financial risk.
Analyst Ratings: What Are They?
Analysts work in banking and financial systems and typically specialize in reporting for stocks or defined sectors. Analysts may attend company conference calls and meetings, research company financial statements, and communicate with insiders to publish "analyst ratings" for stocks. Analysts typically rate each stock once per quarter.
Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.
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