NEW YORK (TheStreet) -- Shares of Sonic Automotive (SAH) are higher by 2.53% to $23.88 at the start of trading on Monday, following a ratings upgrade to "overweight" from "underweight" at Morgan Stanley.
The firm said it raised its rating on the U.S. automotive retailer as the company is working to reinvent its dealer model.
Morgan Stanley upped its price target on Sonic Automotive to $30 from $22.
Separately, TheStreet Ratings team rates SONIC AUTOMOTIVE INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate SONIC AUTOMOTIVE INC (SAH) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, attractive valuation levels, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."
You can view the full analysis from the report here: SAH Ratings Report