
Sonic Automotive (SAH) Stock Forecast & Price Target
Sonic Automotive (SAH) Analyst Ratings
Bulls say
Sonic Automotive's financial stability is reinforced by its significant franchise business, which generates a robust revenue base totaling $14.2 billion in 2024, with a notable 86% of new-vehicle revenue derived from luxury and import brands. The company is well-positioned for sustained growth through its EchoPark segment, which achieved $2.1 billion in revenue and is expected to capture a larger market share amidst a recovering used vehicle demand landscape. The franchise operations demonstrate resilience amid macroeconomic uncertainties, supported by effective inventory management and strong relationships with manufacturers, further solidifying the positive outlook for Sonic Automotive's future financial performance.
Bears say
Sonic Automotive's outlook is negatively impacted by a declining valuation of its EchoPark division, with an estimated enterprise value decreasing from $600 million to $300 million, reflecting a reduction in expected EBITDA multiple from 15x to 10x. Furthermore, the company's performance in EchoPark has been inconsistent, with recent adjustments indicating a projected growth of only 1% year-over-year for 2H25, compared to previously higher forecasts. Additionally, heightened inventory concerns and month-to-month volatility in used auto supply and demand exacerbate fears of a repeat of unfavorable market conditions observed in Q424, which could adversely affect future earnings.
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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