Sonic Automotive upgraded to Buy from Neutral at Seaport Research

Seaport Research analyst Glenn Chin upgraded Sonic Automotive (SAH) to Buy from Neutral with a $74 price target Valuation multiples for the franchise auto retailers “are too low,” the analyst tells investors in a research note. The firm says the profitability and cash flow profile of the group is now structurally higher, which argues for a higher valuation multiple. It upgraded Sonic and raised targets for its peers on a transition to 2025 as the basis for valuations.