Benchmark Co. analyst Michael Albanese has maintained their bullish stance on SAH stock, giving a Buy rating on October 24.
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Michael Albanese has given his Buy rating due to a combination of factors that highlight Sonic Automotive’s potential for future growth. Despite recent challenges such as higher medical costs and a softer performance at EchoPark, the company’s core franchised segment achieved record results in the third quarter, driven by strong aftersales momentum and robust operational metrics compared to its peers.
Furthermore, the stock’s recent pullback of approximately 15% post-earnings is seen as an overreaction, considering the ongoing strength across the franchise network and solid inventory positioning. Additionally, improvements in Powersports guidance are expected to counterbalance the EchoPark softness. With Sonic Automotive trading at some of the lowest multiples in the sector, these factors collectively support the Buy rating.
In another report released on October 24, Needham also reiterated a Buy rating on the stock with a $90.00 price target.