Sonic Automotive (SAH.N): Price Target Increased to $115

研报英文原文证据摘录

Sonic Automotive (SAH.N): Price Target Increased to $115

Viewpoint |

31 Jul 2026 02:56:35 ET │ 21 pages

Sonic Automotive (SAH.N)

Price Target Increased to $115

CITI'S TAKE

US light vehicle sales ended on a high note in June, and we expect the

momentum to continue in the second half. EchoPark is restarting growth

investment with a goal of selling one million vehicles, share count was Buy

reduced 6% in the first half and the Board authorized an additional $500 Price (30 Jul 26 16:00) US$100.34

million for share repurchase. On July 22nd, PAG received a proposal from its

two largest shareholders to buy the share currently not owned, taking the Target price US$115.00↑

company private. In our view, the announced bid to buy the remaining 28% from US$95.00

of PAG has contributed to a re-rating of the Dealer Group. The EV/EBITDA Expected share price return 14.6%multiple for the Group has expanded from 7.0x to 8.0x in the week since the

announcement, moving back in line with the pre-covid levels. We increased Expected dividend yield 1.5%

our price target to $115 from $95 to reflect the higher Group multiple. Expected total return 16.1%

Market Cap US$3,171M

Earnings — SAH reported 2Q 2026 EPS of $1.82 versus $2.20 last year, Citi estimate

for earnings of $1.89, and a consensus estimate of $1.75 (excluding unusual items).

Our new retail unit sales assumptions were too aggressive, accounting for the lower

EPS relative to our estimate. Variable gross per unit at the Franchised Segment in 2Q

Price Performancetotaled $4,904 per unit, down from the pre-tariff inflated period last year and about

flat over the last four quarters. We lowered our 2026 assumption to $6.85 down (RIC: SAH.N, BB: SAH US)

from $7.00 largely to reflect lower new unit sales assumptions. We expect 2027 EPS