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Research Alert: CFRA Maintains Hold Opinion On Shares Of Sonic Automotive Inc.
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Research Alert: CFRA Maintains Hold Opinion On Shares Of Sonic Automotive Inc.
Mar 11, 2026 4:37 AM

03:10 PM EST, 02/18/2026 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month price target by $5 to $70, based on a 2027 P/E of 9.2x, a slight discount to the stock's 10-year average forward P/E of 9.3x. We lower our adjusted EPS estimates to $7.00 from $7.25 for 2026 and to $7.60 from $7.75 for 2027. SAH posted Q4 adjusted EPS of $1.52 vs. $1.51 last year (+1% Y/Y), slightly ahead of the $1.50 consensus. Revenue fell 1% to $3.87B ($70M below consensus), but gross margin expanded 80 bps to 15.5% (in line). We maintain a Hold, seeing more attractive growth opportunities in auto retail. SAH's top- and bottom-line growth remain sluggish Y/Y (down 1% and up 1% in Q4, respectively), underscoring challenging market conditions for auto dealerships. SAH's large luxury vehicle exposure (~55% of total revenue) distinguishes it from other dealers, but its recent decision to prioritize acquisitions over share repurchases and dividends should equate to weaker EPS growth relative to peers.

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