Sonic Automotive rises after Benchmark initiates coverage

Automotive and powersports retailer Sonic Automotive SAH.N shares rise 1% to $70 in early trade

Benchmark initiates coverage on co with "buy" rating, $76 price target, an upside of 9.5% to the stock's last close

Says co benefiting from a resilient premium-luxury franchised business and strong exposure to key markets in Texas and California

Adds franchised operations remain solid despite industry headwinds, while used vehicle platform EchoPark has returned to profitability as used vehicle supply recovers

"SAH's entry into the $40B powersports market offers a capital-light growth avenue, leveraging its retail platform to scale a fragmented, high-margin space"- Benchmark

Six of ten brokerages rate the stock "buy" or higher, four "hold"; their median PT is $74- data compiled by LSEG

Including session moves, shares are up 11% YTD