JPMorgan analyst Rajat Gupta lowered the firm’s price target on Sonic Automotive to $50 from $55 and keeps a Neutral rating on the shares. The company’s Q2 results were solid but they continues to be outshined by challenges at EchoPark, the analyst tells investors in a research note. Recent cost actions at EchoPark are a step in the right direction to stem cash burn but Sonic’s bridge to profitability in the near-term is challenging, says the firm.
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Read More on SAH:
- Sonic Automotive reports Q2 adjusted EPS $1.83, consensus $1.65
- SAH Earnings Report this Week: Is It a Buy, Ahead of Earnings?
- Sonic Automotive price target raised to $60 from $55 at Stephens
- Sonic Automotive suspends operations at eight EchoPark locations
- Sonic Automotive participates in a conference call with JPMorgan
