Needham Trims Price Target on Sonic Automotive (SAH); Maintains Bullish Outlook on Long-Term Growth

Core Insights - Sonic Automotive, Inc. is recognized among the 15 Dividend Growth Stocks with the highest growth rates [1] - The company operates through three main segments: Franchised Dealerships, EchoPark for pre-owned cars, and Powersports for motorcycles and ATVs [2] Financial Performance - On October 24, Needham analyst reduced the price target for Sonic Automotive from $95 to $90 while maintaining a Buy rating [3] - The franchise segment showed solid results in Q3, but performance was affected by volatility in the EchoPark division due to a sluggish recovery in the used car market [3] Long-Term Outlook - Despite near-term challenges, Needham remains optimistic about Sonic's long-term prospects, highlighting its strong presence in premium brands and the unique EchoPark model that supports sustained unit growth [4] Dividend Growth - Sonic Automotive has maintained a stable cash position, contributing to its dividend growth over the past five years, with a growth rate exceeding 29% [5] - The company currently offers a quarterly dividend of $0.38 per share, resulting in a dividend yield of 2.44% as of October 30 [5]