
Sonic Automotive (SAH) Stock Forecast & Price Target
Sonic Automotive (SAH) Analyst Ratings
Bulls say
Sonic Automotive's franchise business serves as a strong foundation, generating stable revenue and bolstered by effective inventory management and solid relationships with luxury vehicle manufacturers, which positions the company favorably amid macroeconomic uncertainties. The company's revenue reached $14.2 billion in 2024, driven largely by the performance of luxury and import dealerships, which account for approximately 86% of new-vehicle revenue. Additionally, Sonic Automotive is optimistic about the growth potential of its EchoPark used-vehicle business, projecting significant share gains and enhanced profitability through its unique model targeting financing and warranty attachments.
Bears say
Sonic Automotive's stock outlook is negatively influenced by a series of operational challenges, particularly within its EchoPark division, which has experienced inconsistent performance and lower-than-expected growth projections. The enterprise valuation of $7.4 billion reflects a significant discount both against its franchise peer group and in its assessment of EchoPark, which has seen a decrease in valuation multiple from 15x to 10x FY26E adjusted EBITDA, indicating a diminished investor confidence. Additionally, concerns over inventory levels and volatile demand in the used vehicle market further exacerbate the company's financial troubles, leading to downward revisions in growth estimates and a more conservative outlook for gross profit per vehicle.
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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