Sonic Automotive: Strong Performance and Growth Amidst Challenges Justifies Buy Rating

In a report released today, John Murphy from Bank of America Securities maintained a Buy rating on Sonic Automotive (SAH – Research Report), with a price target of $80.00.

John Murphy’s rating is based on Sonic Automotive’s strong performance in several key areas despite some challenges. The company reported a slight miss in its adjusted EPS compared to the Bank of America estimate, but it still exceeded the Bloomberg consensus. Sonic Automotive demonstrated solid revenue growth, particularly in new vehicle sales, which were bolstered by a surge in March sales. Additionally, the company’s EchoPark segment showed significant improvement, with adjusted EBITDA surpassing expectations, indicating strong operational execution.
Despite suspending certain aspects of its 2025 outlook due to macroeconomic uncertainties, Sonic Automotive maintained positive momentum in several areas. The company reported impressive same-store sales growth, particularly in new vehicles and finance & insurance, which outperformed expectations. Furthermore, the company’s parts and service segment also showed growth, contributing to the overall positive outlook. These factors, combined with a price objective set at $80.00 USD, support John Murphy’s Buy rating for Sonic Automotive.

According to TipRanks, Murphy is a 4-star analyst with an average return of 5.8% and a 49.05% success rate. Murphy covers the Consumer Cyclical sector, focusing on stocks such as Aptiv, Group 1 Automotive, and American Axle.