---
title: "Research Alert: CFRA Maintains Hold Opinion On Shares Of Sonic Automotive Inc."
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/285003042.md"
description: "CFRA maintains a Hold opinion on Sonic Automotive Inc. (SAH) shares, raising the 12-month price target by $15 to $85 after a strong Q1 earnings report. Adjusted EPS estimates for 2026 and 2027 are increased to $7.05 and $7.85, respectively. Q1 adjusted EPS was $1.62, exceeding consensus, while revenue rose 1% to $3.69B. Gross margin improved to 16.2%. The company also reduced its outstanding shares by 6% in Q1, indicating strong share repurchase activity. Despite positive performance, CFRA maintains a Hold rating due to valuation concerns."
datetime: "2026-05-03T18:45:00.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/285003042.md)
  - [en](https://longbridge.com/en/news/285003042.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/285003042.md)
---

# Research Alert: CFRA Maintains Hold Opinion On Shares Of Sonic Automotive Inc.

02:45 PM EDT, 05/03/2026 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We increase our 12-month price target by $15 to $85, based on a 2027 P/E of 10.8x, a premium to the stock's 10-year average forward P/E of 9.4x. We increase our adjusted EPS estimates to $7.05 from $7.00 for 2026 and to $7.85 from $7.60 for 2027. Following a much better-than-expected Q1 earnings release, we are raising our estimates and price target, but maintaing our Hold view on the shares. SAH posted Q1 adjusted EPS of $1.62 vs. $1.48 (+9%), well ahead of the $1.40 consensus. Revenue rose 1% to $3.69B ($40M below consensus) but gross margin expanded 70 bps to 16.2% (50 bps ahead of consensus). The quarter benefited from record adjusted EBITDA in the EchoPark segment (used vehicle sales). In our view, this was a solid release, highlighted by much better-than-expected margin performance and a notable increase in share repurchase activity, as SAH reduced its outstanding share count by a staggering 6% during Q1 (more than it bought back in all of 2025). We remain at Hold on valuation and a balanced risk/reward.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

### Related Stocks

- [SAH.US](https://longbridge.com/en/quote/SAH.US.md)

## Related News & Research

- [Needham Keeps Their Buy Rating on Sonic Automotive (SAH)](https://longbridge.com/en/news/286120136.md)
- [Do Sonic Automotive’s New EPS-Linked Bonuses Reveal a Shift in Strategic Priorities for SAH?](https://longbridge.com/en/news/276057524.md)
- [Research Alert: CFRA Keeps Sell Opinion On Shares Of Ovintiv Inc.](https://longbridge.com/en/news/286726789.md)
- [Research Alert: CFRA Reiterates Buy Opinion On Shares Of Nextera Energy, Inc.](https://longbridge.com/en/news/286949946.md)
- [Research Alert: CFRA Maintains Hold Opinion On Shares Of Adss Of Iqiyi Inc.](https://longbridge.com/en/news/286799625.md)