- Sonic Automotive's shares initially did well after beating market expectations with its Q2 results, but its stock price subsequently corrected which coincided with its announcement on wage increases.
- Separately, SAH has proposed a strategic review of the EchoPark pre-owned vehicle business, and a potential spin-off might lead to a re-rating of the company's shares in the future.
- The market currently values Sonic Automotive at consensus forward FY 2021 and FY 2022 normalized P/E multiples of 6.4 times and 6.8 times, respectively.
For further details see:
Sonic Automotive: All Eyes On Excellent Results And Potential Corporate Actions