Sonic Automotive Gains 3.25% as Barclays Targets $67 With Revenue Down 1%
Barclays set a $67 price target on Sonic Automotive, implying the stock trades near target with only a 0.56% gap and shares rose 3.25% on 380,710-share volume. Fourth-quarter revenue fell 1% to $3.87 billion and long-term debt-to-capital ratio stands at 0.63, highlighting significant leverage.
1. Barclays Price Target and Stock Movement
On February 23, Barclays set a $67 price target for Sonic Automotive, suggesting just a 0.56% variance from the current valuation. The stock responded with a 3.25% gain on 380,710 shares traded.
2. Fourth-Quarter Revenue Decline
Sonic Automotive reported Q4 2025 revenue of $3.87 billion, down 1% year-over-year, reflecting softer sales across franchised dealerships and EchoPark pre-owned units.
3. Elevated Debt-to-Capital Ratio
The company’s long-term debt-to-capital ratio stands at 0.63, well above the 0.25 industry average, underscoring a significant leverage burden on the balance sheet.
4. EchoPark EBITDA Pressure
EchoPark is projected to see lower EBITDA in fiscal 2026 due to higher marketing and expansion costs, with weaker margins and tariff risks adding to near-term financial pressure.