BofA Sees Long-Term Upside in Sonic Automotive (SAH), Target raised to $94

Sonic Automotive Inc. (NYSE:SAH) is one of the 20 undervalued momentum stocks that are taking off. On June 16, BofA updated its outlook on Sonic Automotive, raising the stock’s price target from $80 to $94 while maintaining its Buy rating. The adjustment reflects a broader revision across its auto sector coverage, prompted by updated estimates and a forward shift in its valuation model to calendar year 2026.

BofA Sees Long-Term Upside in Sonic Automotive (SAH), Target raised to $94

An auto warehouse filled with newly acquired used cars.

According to the analyst, the slight downward revision in U.S. auto sales and production estimates for 2025 and 2026 accounts for potential headwinds, including tariff-related disruptions, supply chain risks around rare earth materials, and ongoing macroeconomic uncertainty. BofA now projects U.S. industry sales at 16.25 million units in 2025 and 16.9 million in 2026, with North American production expected at 15.75 million and 16.4 million units, respectively.

Despite these near-term challenges, the analyst believes most of the pressures should ease by late 2025 or early 2026. The revised target on Sonic Automotive reflects this measured optimism, incorporating the expected normalization of conditions over the medium term.

Sonic Automotive Inc. (NYSE:SAH) is one of the largest automotive retailers in the United States. Its services include the sale of both new and used cars and light trucks, sales of replacement parts, vehicle maintenance, warranty services, paint and repair services, and other aftermarket services.

While we acknowledge the potential of SAH as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: Harvard University Stock Portfolio: Top 10 Stock Picks and 10 Best Tech Stocks to Buy According to Billionaires.

Disclosure: None.