
Sonic Automotive (SAH) Stock Forecast & Price Target
Sonic Automotive (SAH) Analyst Ratings
Bulls say
Sonic Automotive demonstrated robust financial performance in 4Q24, with a notable increase in gross margin by 0.8% year-over-year, reaching 50.8%, alongside service and parts gross profit rising 12.2% year-over-year. The finance and insurance (F&I) segment showed significant growth, with gross profit per unit (GPU) increasing by $564 year-over-year to $2,927, and F&I revenue/gross profit escalating by 14% year-over-year. Overall, these metrics indicate a strengthening financial position and operational efficiency, contributing to a positive outlook for the company's future performance.
Bears say
Sonic Automotive's stock outlook appears negative due to several fundamental challenges highlighted in recent financial reports. The company experienced a decline in used vehicle gross profit units (GPUs) by $200 sequentially and $49 year-over-year, alongside a 5.1% decrease in used vehicle units in 4Q24, indicating struggles in maintaining profitability in its used vehicle segment. Additionally, the average EchoPark store count dropped significantly from 25 stores in 4Q23 to 18 in 4Q24, reflecting the difficulties in scaling operations amidst a tough inventory management environment exacerbated by slower retail transactions compared to wholesale dispositions.
This aggregate rating is based on analysts' research of Sonic Automotive and is not a guaranteed prediction by Public.com or investment advice.
Sonic Automotive (SAH) Analyst Forecast & Price Prediction
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