Sonic Automotive rises after Benchmark initiates coverage

Sonic Automotive

28/05/2025 14:55

** Automotive and powersports retailer Sonic Automotive SAH.N shares rise 1% to $70 in early trade

** Benchmark initiates coverage on co with "buy" rating, $76 price target, an upside of 9.5% to the stock's last close

** Says co benefiting from a resilient premium-luxury franchised business and strong exposure to key markets in Texas and California

 ** Adds franchised operations remain solid despite industry headwinds, while used vehicle platform EchoPark has returned to profitability as used vehicle supply recovers

** "SAH's entry into the $40B powersports market offers a capital-light growth avenue, leveraging its retail platform to scale a fragmented, high-margin space"- Benchmark

** Six of ten brokerages rate the stock "buy" or higher, four "hold"; their median PT is $74- data compiled by LSEG

** Including session moves, shares are up 11% YTD

 (Reporting by Apratim Sarkar)

 ((Apratim.Sarkar@thomsonreuters.com))