- Morgan Stanley analyst Adam Jonas lowered the firm's price target on Sonic Automotive ( SAH ) to $33 from $40 and keeps an Underweight rating on the shares.
- He is making "material cuts" to forecasts across his autos and shared mobility coverage, particularly in FY23, to reflect slowing growth and credit headwinds, said Jonas, who notes that his top line and EBITDA estimate cuts leave his forecasts 5%-10% or more below consensus expectations.
- Key drivers of the changes include a U.S. SAAR cut that takes his FY23 SAAR forecast to 15M units, expectations for price/mix deterioration from peak comps and auto credit pressures, Jonas tells investors.
- Sonic Automotive's SA Quant Rating and Wall St. Analysts Rating both stands with a Buy (4 Very Bullish, Bearish 1).
- Since the start of 2022, Sonic Automotive's shares were down around 30% , and over a period of one year, shares were down around 27% .
- Shares are currently -3.75% to $34.66 today.
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Morgan Stanley cuts Sonic Automotive forecast to reflect slowing growth and credit headwinds