Sonic Automotive double upgraded at BofA as EchoPark ‘turns the corner’

As previously reported, BofA analyst John Murphy double upgraded Sonic Automotive to Buy from Underperform with a price target of $68, up from $55, following the company’s Q1 earnings report. The key reasons for the firm’s prior Underperform rating are now inflecting positively, says the analyst, who notes that earnings were slightly better than expected, the FY24 outlook was maintained and management call commentary was “upbeat.” Most importantly, EchoPark has “started to turn the corner and appears set to contribute positively to EPS in 2024,” the analyst added.