Stephens Neutral Sonic Automation (SAH)


Sonic Automotive Inc. (NYSE:SAH) is one of them 14 Most Undervalued NYSE Stocks to Buy According to Analysts.

Stephens, on February 19, cut his target price on Sonic Auto by 1.5% and maintained an equal weight call on the stock. The target price update comes as a result of the company adjusting its 2026 forecast and starting 2027 estimates, following the release of the company’s Q4 2025 earnings report a day earlier on February 18.

Earnings spreads showed strong results for Sonic. It delivered adjusted EPS of $1.52, only narrowly beating Street consensus estimates of $1.50 despite a slight decline in revenue ($3.87 billion vs. Street consensus of $3.94).

Stephens Neutral Sonic Automation (SAH)
Stephens Neutral Sonic Automation (SAH)

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Even with a strong quarter (and a record year in revenue), Sonic’s management warned of the potential impact of rapidly rising auto prices, which will dampen consumer demand in 2026. Frank Dyke, vice president of retail strategy, said during an earnings question-and-answer segment that “prices are very high, the consumer is starting to spend more,” as production starts to cost more. What we did not see in 2025. He is now concerned that buyers may not be able to deal with many more, which could lead to softer demand.

Sonic Automotive Inc. (NYSE:SAH) is an automotive retailer, selling both new and used vehicles and providing maintenance, warranty, paint and repair services. The company is based in Charlotte, North Carolina, and was founded in January 1997 by Olin Burton Smith and Brian Scott Smith.

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Read more: 13 Deep Value Stocks to Buy Right Now and 14 Best Consumer Discretionary Stocks to Buy Right Now

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