Sonic Corporation (SONC) Downgraded To Sell Rating

Analysts Steve West and Matthew Van Vliet at Stifel Nicolaus have downgraded Sonic Corporation (NASDAQ: SONC) from Hold to Sell rating. The company has been downgraded based on valuations that have outpaced its lagging fundamentals.

Analysts have also lowered their fiscal 2010 and fiscal 2011 estimate for the company. EPS estimate for fiscal 2010 has been lowered from $0.56 to $0.54, while EPS estimate for fiscal 2011 has been lowered from $0.70 to $0.60.

Analysts at Stifel Nicolaus believe that rising unemployment and reduced consumer spending in Sonic Corporation’s core markets limit any short-term upside potential.