Forecasting The Future: 4 Analyst Projections For Sonic Automotive
4 analysts have expressed a variety of opinions on Sonic Automotive (NYSE:SAH) over the past quarter, offering a diverse set of opinions from bullish to bearish.
Summarizing their recent assessments, the table below illustrates the evolving sentiments in the past 30 days and compares them to the preceding months.
| Bullish | Somewhat Bullish | Indifferent | Somewhat Bearish | Bearish | |
|---|---|---|---|---|---|
| Total Ratings | 2 | 0 | 1 | 1 | 0 |
| Last 30D | 1 | 0 | 0 | 0 | 0 |
| 1M Ago | 0 | 0 | 0 | 0 | 0 |
| 2M Ago | 0 | 0 | 1 | 0 | 0 |
| 3M Ago | 1 | 0 | 0 | 1 | 0 |
Analysts provide deeper insights through their assessments of 12-month price targets, revealing an average target of $61.5, a high estimate of $68.00, and a low estimate of $53.00. Marking an increase of 9.82%, the current average surpasses the previous average price target of $56.00.
Interpreting Analyst Ratings: A Closer Look
The perception of Sonic Automotive by financial experts is analyzed through recent analyst actions. The following summary presents key analysts, their recent evaluations, and adjustments to ratings and price targets.
| Analyst | Analyst Firm | Action Taken | Rating | Current Price Target | Prior Price Target |
|---|---|---|---|---|---|
| John Murphy | B of A Securities | Lowers | Buy | $67.00 | $68.00 |
| Rajat Gupta | JP Morgan | Raises | Neutral | $58.00 | $53.00 |
| Rajat Gupta | JP Morgan | Raises | Underweight | $53.00 | $48.00 |
| John Murphy | B of A Securities | Raises | Buy | $68.00 | $55.00 |
Key Insights:
- Action Taken: Analysts frequently update their recommendations based on evolving market conditions and company performance. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Sonic Automotive. This information provides a snapshot of how analysts perceive the current state of the company.
- Rating: Unveiling insights, analysts deliver qualitative insights into stock performance, from 'Outperform' to 'Underperform'. These ratings convey expectations for the relative performance of Sonic Automotive compared to the broader market.
- Price Targets: Gaining insights, analysts provide estimates for the future value of Sonic Automotive's stock. This comparison reveals trends in analysts' expectations over time.
Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of Sonic Automotive's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.
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Get to Know Sonic Automotive Better
Sonic Automotive is one of the largest auto dealership groups in the United States. The company has 108 franchised stores in 18 states, primarily in metropolitan areas in California, Texas, and the Southeast, plus 25 EchoPark used-vehicle stores, 16 collision centers, and 13 powersports locations. The franchise stores derive revenue from new and used vehicles plus parts and collision repair, finance, insurance, and wholesale auctions. Luxury and import dealerships make up about 86% of franchise new-vehicle revenue, while Honda, BMW, Mercedes, and Toyota constitute about 58% of new-vehicle revenue. BMW is the largest brand at about 25%. 2023's revenue was $14.4 billion, with EchoPark's portion totaling $2.4 billion. Sonic bought RFJ Auto in December 2021, which added $3.2 billion in sales.
Sonic Automotive: Financial Performance Dissected
Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.
Revenue Challenges: Sonic Automotive's revenue growth over 3 months faced difficulties. As of 31 March, 2024, the company experienced a decline of approximately -3.07%. This indicates a decrease in top-line earnings. When compared to others in the Consumer Discretionary sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Net Margin: Sonic Automotive's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of 1.24%, the company showcases strong profitability and effective cost management.
Return on Equity (ROE): Sonic Automotive's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 4.68% ROE, the company effectively utilizes shareholder equity capital.
Return on Assets (ROA): The company's ROA is a standout performer, exceeding industry averages. With an impressive ROA of 0.78%, the company showcases effective utilization of assets.
Debt Management: Sonic Automotive's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 4.29.
Understanding the Relevance of Analyst Ratings
Ratings come from analysts, or specialists within banking and financial systems that report for specific stocks or defined sectors (typically once per quarter for each stock). Analysts usually derive their information from company conference calls and meetings, financial statements, and conversations with important insiders to reach their decisions.
Beyond their standard evaluations, some analysts contribute predictions for metrics like growth estimates, earnings, and revenue, furnishing investors with additional guidance. Users of analyst ratings should be mindful that this specialized advice is shaped by human perspectives and may be subject to variability.
This article was generated by Benzinga's automated content engine and reviewed by an editor.