
Sonic Automotive (SAH) Stock Forecast & Price Target
Sonic Automotive (SAH) Analyst Ratings
Bulls say
Sonic Automotive's strong financial outlook is bolstered by positive indicators such as a 110% year-over-year increase in adjusted EBITDA for 4Q25, reaching $8.8 million, and a notable 14.9% growth in total gross profit per unit (GPU) to $3,417. The company benefits from a favorable demand environment supported by a 10.9% year-over-year increase in average tax refunds, alongside a well-managed luxury vehicle mix that enhances pricing discipline. Additionally, Sonic Automotive's strategic focus on increased advertising spending and digital investments positions the company for sustained growth, with management projecting high-single-digit unit growth in 2026 and a further escalation in 2027 as industry inventory normalizes.
Bears say
Sonic Automotive experienced a decline in same-store new units by 11% year-over-year in the fourth quarter of 2025, along with a retail unit decrease of 5.6% year-over-year, indicating challenges in unit sales growth. The company's EchoPark used-vehicle division has shown inconsistent performance, attributed to volatility in used auto supply and demand, which may hinder long-term growth despite its low-cost provider model. Additionally, management has expressed concerns regarding affordability, tariff-related pricing pressures, and potential OEM margin adjustments, coupled with a leveraged balance sheet that raises risks associated with future performance.
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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