Benchmark starts Sonic Automotive at Buy amid used demand normalization

As previously reported, Benchmark initiated coverage of Sonic Automotive (SAH) with a Buy rating and $76 price target As the smallest of the six public auto dealers, the firm sees Sonic benefiting from a resilient premium-luxury franchised business and strong exposure to key markets in Texas and California. Rising new car prices, potentially driven by tariffs, could boost used demand in late 2025 and early 2026, notes the analyst, who sees Sonic’s used vehicle platform, EchoPark, “emerging as a more profitable and efficient business.”