
Sonic Automotive (SAH) Stock Forecast & Price Target
Sonic Automotive (SAH) Analyst Ratings
Bulls say
Sonic Automotive's robust performance is underscored by a significant 110% year-over-year increase in adjusted EBITDA for the fourth quarter of 2025, reaching $8.8 million, alongside a 14.9% year-over-year rise in total gross profit per unit (GPU) to $3,417. The company's revenue from luxury and import dealerships constitutes a substantial portion of its business, and improvements in warranty gross profit indicate a healthy growth trajectory following a brief normalization period. Additionally, management's focus on increasing advertising, digital investments, and strategic store openings position Sonic Automotive favorably for continued growth in a normalizing inventory environment, with a guidance for high-single-digit unit growth in 2026.
Bears say
Sonic Automotive experienced a significant decline in same-store new unit sales, which fell by 11% year-over-year in the fourth quarter of 2025, alongside a 5.6% decrease in retail units, indicating pressure on unit growth and ongoing affordability concerns for consumers. The company maintains a leveraged balance sheet, utilizing various forms of debt for financing, which increases financial volatility and the risk of insolvency, potentially limiting operational capabilities in a challenging market environment. Furthermore, ongoing pricing pressure related to tariffs faced by original equipment manufacturers (OEMs) and an already tight supply of service technicians could exacerbate operational hurdles, contributing to a negative outlook for Sonic Automotive's stock.
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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