Bank of America has adjusted its price target for Sonic Automotive (SAH, Financial), lowering it from $85 to $80. Despite maintaining a Buy rating for the stock, the financial institution has revised its outlook in light of current market conditions.
The first quarter showed promise with better-than-expected performance in production volumes and sales. This has led the analyst to anticipate improved Q1 financial results for Sonic Automotive.
Nonetheless, the ongoing uncertainty around tariffs remains a significant concern for the auto industry. The situation surrounding tariffs is volatile and unresolved, which has prompted a reduction in valuation multiples by as much as 1.0x across the sector. This adjustment is driven by the expectation that such uncertainty might compel companies to retract or suspend their financial guidance in the near future.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 6 analysts, the average target price for Sonic Automotive Inc (SAH, Financial) is $75.67 with a high estimate of $93.00 and a low estimate of $60.00. The average target implies an upside of 30.08% from the current price of $58.17. More detailed estimate data can be found on the Sonic Automotive Inc (SAH) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, Sonic Automotive Inc's (SAH, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Sonic Automotive Inc (SAH, Financial) in one year is $59.08, suggesting a upside of 1.56% from the current price of $58.17. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Sonic Automotive Inc (SAH) Summary page.
