Jefferies Cuts Price Target on Sonic Corp (SONC) to $32 Following 3Q Report

Jefferies reiterated a Hold rating on Sonic (NASDAQ: SONC), and cut the price target to $32.00 (from $34.00), following the company's 3Q earnings report. SONC reported SSS of 2.0%, missing the revised consensus estimate of 2.5%. SSS started the quarter up 6% in March but slowed notably into April & May due to broader sluggishness in consumer spending and some degree of negative weather impact in core markets.

Analyst Alexander Slagle commented, "F3Q SSS of 2.0% vs downwardly revised cons 2.5%, as trends weakened into Apr & May on broader slowing in consumer spending & cool, wet weather. Trends stabilized in June, but visibility very low, taking SSS outlook to 2-4% (fr 4-6%). On a positive note, Co reiterated F16 EPS, devt pipeline building nicely & Co announced plan to ramp franchise mix to 95%. That said, SSS should still be the key stock driver & lack of visibility likely keeps it under pressure."

For an analyst ratings summary and ratings history on Sonic click here. For more ratings news on Sonic click here.

Shares of Sonic closed at $30.35 yesterday.

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