Analyst Chris Pierce from Needham reiterated a Buy rating on Sonic Automotive and keeping the price target at $95.00.
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Chris Pierce has given his Buy rating due to a combination of factors, primarily focusing on the long-term growth potential of Sonic Automotive’s EchoPark division. Despite recent volatility in the used vehicle inventory, which has raised concerns about unit growth, Pierce remains confident in the company’s unique pricing model and its ability to leverage a more premium consumer base.
In the long run, the growth of EchoPark stores and units is expected to drive value, particularly as the industry moves away from its lowest point in terms of unit demand. The $95 price target for Sonic Automotive remains unchanged, as EchoPark represents a significant portion of the company’s enterprise value. Pierce’s analysis suggests that, despite short-term challenges, the strategic positioning of Sonic Automotive and EchoPark will yield positive results in the future.
Pierce covers the Consumer Cyclical sector, focusing on stocks such as Sonic Automotive, Rivian Automotive, and CarGurus. According to TipRanks, Pierce has an average return of 0.0% and a 45.13% success rate on recommended stocks.
In another report released on September 19, TR | OpenAI – 4o also upgraded the stock to a Buy with a $88.00 price target.