Sonic Automotive Maintains Buy Rating with $80 Price Target: Analyst

Benchmark Co. analyst Michael Albanese reiterated a Buy rating for Sonic Automotive (SAH) with a $80.00 price target. Albanese has a 32.35% success rate and an average return of -20.1%. The street consensus is a Hold rating with an $82.89 average price target, a 5.06% upside from current levels. Sonic Automotive has a one-year high of $89.62 and a one-year low of $52.00, with an average volume of 224.9K.

Title: Sonic Automotive (SAH) Stock Analysis: Benchmark Reiterates Buy Rating with $80.00 Target

July 02, 2025 - Benchmark Co. analyst Michael Albanese has reiterated a Buy rating for Sonic Automotive (NYSE: SAH) with a price target of $80.00. Albanese's track record includes a 32.35% success rate and an average return of -20.1%, while the street consensus remains a Hold rating with an average price target of $82.89, representing a 5.06% upside from current levels [2].

Recent Performance and Outlook
Sonic Automotive has shown resilience in the market, with a one-year high of $89.62 and a one-year low of $52.00, averaging a daily trading volume of 224.9K shares [4]. The company's recent share price rally has been driven by a double-digit increase in share price over the past couple of months, although it still falls short of its yearly peak [1].

Analyst Sentiment and Valuation
Analysts have mixed views on Sonic Automotive. While Albanese maintains a positive outlook, the broader consensus is more cautious. The company's valuation model suggests that Sonic Automotive is fairly priced at around 12.01% above its intrinsic value, with a potential share price of $70.46 [1]. However, the stock's stability is indicated by its low beta, which could provide a more stable performance relative to the market.

Future Growth Expectations
Sonic Automotive is expected to see significant growth in profit, with projections indicating a 97% increase over the next couple of years. This growth is anticipated to be driven by higher cash flow, which could feed into a higher share valuation [1]. Despite the optimistic outlook, investors should consider other factors such as the company's financial strength and balance sheet to make informed decisions.

Market Impact of Amazon's Expansion
Amazon's recent expansion into the automotive marketplace, including partnerships with Hyundai and Hertz, has had mixed impacts on the industry. While Amazon's entry into the used car space has put pressure on digital used car retailers like Carvana (NYSE: CVNA) and CarMax (NYSE: KMX), Sonic Automotive and other dealerships like Penske Automotive Group (NYSE: PAG) and Lithia Motors (NYSE: LAD) have seen little impact in trading [2].

ESG Considerations
Sonic Automotive's Environmental, Social, and Governance (ESG) score is -89.38%, with significant negative impacts driven by its physical retail of vehicle parts and truck repair activities [4]. The company's environmental impact score is -3.41, indicating a need for improvement in sustainability practices.

Conclusion
Investors should carefully consider the latest financial data and analyst ratings when evaluating Sonic Automotive. While the company's future growth prospects are promising, the current fair valuation and market stability should be taken into account. Further analysis of the company's balance sheet and ESG factors may provide additional insights for potential investors.

References
[1] https://finance.yahoo.com/news/now-opportune-moment-examine-sonic-110550381.html
[2] https://www.investing.com/news/analyst-ratings/benchmark-reiterates-buy-rating-on-sonic-auto-stock-amid-amazons-auto-expansion-93CH-4206959
[3] https://www.marketscreener.com/news/sonic-automotive-inc-acquired-jaguar-land-rover-santa-monica-ce7c51dddc8af020
[4] https://www.marketbeat.com/stocks/NYSE/SAH/