JPMorgan Lowers Sonic Automotive Price Target to $64.00

JPMorgan Chase & Co. has lowered its price target for Sonic Automotive (NYSE: SAH) from $72.00 to $64.00, according to a report released on Tuesday. The firm maintains an underweight rating on the stock, suggesting a potential upside of 4.66% from its current price. This adjustment comes amid mixed analyst sentiment, with several other brokerages recently revising their outlooks on SAH.

Needham & Company LLC, for instance, raised its target price from $90.00 to $139.00 and assigned a buy rating. Citigroup also increased its target from $95.00 to $115.00, maintaining a buy rating. Conversely, Morgan Stanley reduced its target from $72.00 to $57.00 and assigned an underweight rating. Barclays lowered its target from $87.00 to $75.00 with an equal weight rating, while Seaport Research Partners downgraded the stock from buy to neutral, raising its target from $185.00 to $205.00.

Analysts are divided, with four rating the stock as a buy, four as a hold, and two as a sell. The consensus rating is hold, with a target price of $94.50. On Tuesday, SAH stock traded down $1.48 to $61.15, with a market capitalization of $1.93 billion and a PE ratio of 9.74. The company reported strong quarterly earnings, beating estimates with $1.82 earnings per share and $3.93 billion in revenue.

In other news, major shareholder Paul P. Rusnak purchased 21,645 shares at $59.50 per share, increasing his ownership by 0.42%. Institutional investors have also adjusted their holdings, with Dimensional Fund Advisors LP and Empowered Funds LLC increasing their stakes. Sonic Automotive, headquartered in Charlotte, North Carolina, operates franchised dealerships and EchoPark Automotive, a used-vehicle retail business.