Chris Pierce, an analyst from Needham, reiterated the Buy rating on Sonic Automotive. The associated price target is $95.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Chris Pierce has given his Buy rating due to a combination of factors including the strong performance of Sonic Automotive’s franchise business and the promising growth potential of the EchoPark segment. The company’s recent quarterly results exceeded expectations, particularly in terms of gross profit from retail and finance & insurance operations.
Additionally, the outlook for new vehicle sales is improving, supported by favorable tariff conditions, which benefits Sonic Automotive’s franchise operations. EchoPark is expected to experience sustainable growth, with the company increasing its adjusted EBITDA guidance for FY25 and planning to expand its locations by FY26. The raised price target of $95 is based on a comprehensive valuation of Sonic Automotive’s enterprise value, factoring in both its franchise dealership and EchoPark segments.