Sonic Rating Lowered to Neutral at Sterne Agee (SONC)
Sonic (NASDAQ: SONC) was downgraded by analysts at Sterne Agee from a “buy” rating to a “neutral” rating in a research report issued to clients and investors on Friday, TheFlyOnTheWall.com reports.
The analysts wrote, “We are downgrading shares of SONC from BUY to Neutral as we believe that shares are fully valued at current levels given an appreciation of ~48% over the last 12 months. While we remain optimistic that the company can generate low-single-digit SSS and low-double-digit EPS growth over the intermediate term, we believe that the risk/reward is fairly balanced. Shares of SONC are presently trading at 17.6x our FY13 EPS estimate (vs. 3-yr historical P/E of ~14.7x) and ~8.7x on an EV/EBITDA basis.”
A number of other firms have also recently commented on SONC. Analysts at Lazard Capital Markets raised their price target on shares of Sonic from $12.00 to $13.00 in a research note to investors on Monday. They now have a “buy” rating on the stock. Analysts at RBC Capital raised their price target on shares of Sonic from $12.00 to $14.00 in a research note to investors on Monday, March 11th. They now have an “outperform” rating on the stock.
Five analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. Sonic has a consensus rating of “Buy” and an average target price of $13.38.
Sonic (NASDAQ: SONC) traded down 1.51% on Friday, hitting $11.75. Sonic has a 1-year low of $6.84 and a 1-year high of $12.16. The stock’s 50-day moving average is currently $11.40. The company has a market cap of $653.7 million and a price-to-earnings ratio of 19.18.
Sonic (NASDAQ: SONC) last issued its quarterly earnings data on Thursday, January 3rd. The company reported $0.11 earnings per share for the quarter, meeting the analysts’ consensus estimate of $0.11. The company had revenue of $126.01 million for the quarter, compared to the consensus estimate of $126.29 million. During the same quarter in the prior year, the company posted $0.09 earnings per share. The company’s quarterly revenue was down 1.8% on a year-over-year basis. Analysts expect that Sonic will post $0.70 EPS for the current fiscal year.
Sonic Corp. (NASDAQ: SONC) operates and franchises chain of drive-in restaurants (Sonic Drive-Ins) in the United States.
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