Sonic Automotive Stock: A Deep Dive Into Analyst Perspectives (4 Ratings)

Across the recent three months, 4 analysts have shared their insights on Sonic Automotive (NYSE:SAH), expressing a variety of opinions spanning from bullish to bearish.

Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.

	Bullish	Somewhat Bullish	Indifferent	Somewhat Bearish	Bearish
Total Ratings	1	0	2	1	0
Last 30D	1	0	1	0	0
1M Ago	0	0	1	0	0
2M Ago	0	0	0	1	0
3M Ago	0	0	0	0	0

Insights from analysts' 12-month price targets are revealed, presenting an average target of $73.25, a high estimate of $90.00, and a low estimate of $67.00. This current average has decreased by 2.01% from the previous average price target of $74.75.

Diving into Analyst Ratings: An In-Depth Exploration

A comprehensive examination of how financial experts perceive Sonic Automotive is derived from recent analyst actions. The following is a detailed summary of key analysts, their recent evaluations, and adjustments to ratings and price targets.

Analyst	Analyst Firm	Action Taken	Rating	Current Price Target	Prior Price Target
Jeff Lick	Stephens & Co.	Lowers	Equal-Weight	$67.00	$68.00
Chris Pierce	Needham	Maintains	Buy	$90.00	$90.00
John Babcock	Barclays	Lowers	Equal-Weight	$69.00	$71.00
Rajat Gupta	JP Morgan	Lowers	Underweight	$67.00	$70.00

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: Understanding forecasts, analysts offer estimates for Sonic Automotive's future value. Examining the current and prior targets provides insight into analysts' changing expectations.

To gain a panoramic view of Sonic Automotive's market performance, explore these analyst evaluations alongside essential financial indicators. Stay informed and make judicious decisions using 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: Delving into Financials

Market Capitalization Analysis: Falling below industry benchmarks, the company's market capitalization reflects a reduced size compared to peers. This positioning may be influenced by factors such as growth expectations or operational capacity.

Revenue Growth: Sonic Automotive's remarkable performance in 3M is evident. As of 30 September, 2025, the company achieved an impressive revenue growth rate of 13.81%. This signifies 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: Sonic Automotive's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 1.18%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Sonic Automotive's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.46% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): Sonic Automotive's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 0.78% ROA, the company effectively utilizes its assets for optimal returns.

Debt Management: With a below-average debt-to-equity ratio of 3.89, Sonic Automotive adopts a prudent financial strategy, indicating a balanced approach to debt management.

Understanding the Relevance of Analyst Ratings

Within the domain of banking and financial systems, analysts specialize in reporting for specific stocks or defined sectors. Their work involves attending company conference calls and meetings, researching company financial statements, and communicating with insiders to publish "analyst ratings" for stocks. Analysts typically assess and rate each stock once per quarter.

Analysts may enhance their evaluations by incorporating forecasts for metrics like growth estimates, earnings, and revenue, delivering additional guidance to investors. It is vital to acknowledge that, although experts in stocks and sectors, analysts are human and express their opinions when providing insights.

This article was generated by Benzinga's automated content engine and reviewed by an editor.