Oppenheimer Remains a Buy on Sonic

By Jason Carr

In a report released today, Brian Bittner from Oppenheimer reiterated a Buy rating on Sonic (NASDAQ: SONC), with a price target of $29. The company’s shares closed yesterday at $27.50.

Bittner commented:

“SONC’s 3Q was relatively in-line without major surprises. Our ’17E EPS remains unchanged, but we do tweak ’18 EPS estimates slightly lower as G&A steps up relative to our original thinking (EPS from $1.44 to $1.40). After the August board meeting the balance sheet is likely to take on more leverage, but we keep this out of our model for now. Shares appear range-bound until lackluster SSS improve which we have limited visibility into.”

According to TipRanks.com, Bittner is a top 100 analyst with an average return of 12.3% and a 69.9% success rate. Bittner covers the Services sector, focusing on stocks such as Restaurant Brands International, Popeyes Louisiana Kitchen, and Jack In The Box Inc.

Sonic has an analyst consensus of Hold, with a price target consensus of $27.50.

Sonic’s market cap is currently $1.19B and has a P/E ratio of 20.07. The company has a book value ratio of -7.5210.

Based on the recent corporate insider activity of 23 insiders, corporate insider sentiment is negative on the stock. Most recently, in January 2017, Larry Nichols, a Director at SONC bought 2,388 shares for a total of $20,871.

TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.

Sonic Corp. operates and franchises a chain of quick-service restaurants. It also leases real estate and receives equity earnings in non-controlling ownership in a number of franchise drive ins. The company was founded by Troy N. Smith Sr. in 1953 and is headquartered in Oklahoma City, OK.,000WNZ-E