Analyst Chris Pierce from Needham reiterated a Buy rating on Sonic Automotive and keeping the price target at $90.00.
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Chris Pierce has given his Buy rating due to a combination of factors that highlight the resilience and upside in Sonic Automotive’s business model. He emphasizes that steady performance in fixed operations and finance & insurance is sustaining overall profitability, even as new vehicle sales remain pressured by macro and industry forces beyond the company’s control.
He also points to a constructive outlook for the EchoPark segment, where management is willing to accept weaker FY26 earnings to fund marketing and store expansion as used inventory normalizes, supporting an ambitious long-term volume target. His $90 price target reflects a sum-of-the-parts valuation that assigns distinct enterprise values to the core franchised dealerships and EchoPark, then applies a modest conglomerate discount, leaving room for appreciation from current levels.
Based on the recent corporate insider activity of 17 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of SAH in relation to earlier this year.