UBS Cuts Price Target on Sonic Automotive (SAH) Following 3Q
- Record-setting rally pushes on as S&P ends week up 3 percent
- Trump's Cohn Pick Most Bullish Sign Yet for Banks - Cowen
- Unusual 11 Mid-Day Movers: (IDXG) (INVN) (EBS) Higher; (SCON) (DTEA) (DLTH) Lower (more...)
- 21st Century Fox (FOXA) offers to acquire Sky for GBP10.75/share
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
UBS maintained a Sell rating on Sonic Automotive (NYSE: SAH), and cut the price target to $16.00 (from $17.00), Following the company's 3Q earnings report. Sales of $2.56bn beat consensus of $2.49bn. However, margins were below estimates across all segments. UBS lowered 2016 EPS estimates from $2.05 to $1.95.
Analyst Colin Langan commented, "SAH shares traded down 5% today following its margin miss and downward guidance revision. Sales of $2.56bn beat consensus of $2.49bn. Compared to our estimates, most of the beat was driven by higher P&S and used wholesale sales. However, margins were below our estimates across all segments. SAH pointed to headwinds from high BMW incentives and inventory (started year with 7,000 BMW inventory, down to 4,300 today), and weakness in the Houston market. SAH lowered FY guidance due particularly to uncertainty on BMW incentives. We maintain our Sell rating given the continued new & used margin pressure."
Shares of Sonic Auto closed at $16.95 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UBS Cuts Price Target on Restoration Hardware (RH) to $34 Following 3Q
- Jefferies Raises Price Target on Broadcom Ltd. (AVGO) to $210 Following 4Q
- MKM Partners Raises Price Target on Finisar (FNSR) to $43 Following 2Q
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Related EntitiesUBS, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!