Sonic Automotive Target Price Cut to $67 on 2026 Demand Concerns
Barclays lowered its Sonic Automotive target price by 2.9% to $67 following management’s cautious 2026 vehicle demand outlook. Sonic posted Q4 adjusted EPS of $1.52 versus $1.50 consensus but missed revenue estimates as rising new-car prices raise concerns over consumer demand elasticity.
1. Barclays Lowers Target Price
Barclays trimmed its Sonic Automotive target by 2.9% to $67 and maintained an Equal Weight rating after management flagged cautious 2026 vehicle demand forecasts.
2. Q4 2025 Earnings Beat EPS, Slight Revenue Miss
Sonic reported Q4 adjusted EPS of $1.52, narrowly ahead of the $1.50 consensus, but revenue fell slightly short of analyst expectations.
3. Management Flags Pricing and Demand Risks
Vice President Frank Dyke warned that escalating new-car prices could test consumer elasticity and potentially dampen vehicle sales in early 2026.
4. Business Overview
Sonic Automotive operates new and used vehicle dealerships with maintenance, warranty and repair services across the U.S.; the company was founded in 1997 and is headquartered in Charlotte, North Carolina.