Should I Buy SDA? SDA 2026 Analysis

Should You Buy SunCar Technology Group Inc (SDA) Today? Analysis, Price Targets, and 2026 Outlook.

Conclusion

Hold

Latest Price

2.000

1 Day change

52 Week Range

10.610

Analysis Updated At

2026/01/26

SunCar Technology Group Inc (SDA) is not a good buy for a beginner, long-term investor at this time. The company's financial performance is weak, with a significant drop in net income and EPS, and technical indicators suggest a bearish trend. Additionally, analysts have lowered the price target, and there are no strong positive catalysts or trading signals to support a buy decision.

Technical Analysis

The technical indicators are bearish. The MACD histogram is negative and expanding downward, RSI is neutral at 40.465, and moving averages indicate a bearish trend (SMA_200 > SMA_20 > SMA_5). The stock is trading near its support level of 2.02, with resistance at 2.131. Historical patterns suggest a 50% chance of further declines in the short term (-4.1% in the next day, -6.92% in the next week, -17.9% in the next month).

Options Data

Positive Catalysts

The company has a gross margin increase of 2.08% YoY and is generating double-digit revenue growth.

Neutral/Negative Catalysts

Net income dropped by 95.79% YoY, EPS fell by 100%, and the company missed revenue estimates for the first half of the year. Analysts have lowered the price target from $12 to $6, citing lumpier-than-expected business performance. Additionally, there are no significant trading trends from hedge funds or insiders, and no recent news or congress trading data.

Financial Performance

In Q3 2025, revenue increased by 5.61% YoY to $115.78M, but net income dropped significantly to -$91,000 (-95.79% YoY), and EPS fell to 0 (-100% YoY). Gross margin improved slightly to 54.38% (+2.08% YoY).

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

BTIG maintains a Buy rating but has lowered the price target from $12 to $6, citing missed revenue estimates and lumpier-than-expected business performance.

1 Analyst Rating

Wall Street analysts forecast SDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for SDA is 6 USD with a low forecast of 6 USD and a high forecast of 6 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

1 Buy

0 Hold

0 Sell

Moderate Buy

Current: 2.000

Low

Averages

High

Current: 2.000

Low

Averages

High

BTIG

Buy

downgrade

$12 -> $6

AI Analysis

2025-10-29

Reason

BTIG

Price Target

$12 -> $6

AI Analysis

2025-10-29

downgrade

Buy

Reason

BTIG lowered the firm's price target on SunCar Technology to $6 from $12 and keeps a Buy rating on the shares. The company's first-half results missed the firm's estimates of $138.5M and $11.5M, respectively, with nearly half the revenue miss came from Autmotive Services where SDA made the strategic decision to discontinue certain low-margin business, the analyst tells investors in a research note. SunCar is generating healthy, double-digit growth, but the business is proving lumpier than we anticipated, the firm added.

SDA Should I Buy

SDA Should I Buy

Should You Buy SunCar Technology Group Inc (SDA) Today? Analysis, Price Targets, and 2026 Outlook.

Technical Analysis

Options Data

Positive Catalysts

Neutral/Negative Catalysts

Financial Performance

Growth

Profitability

Efficiency

Analyst Ratings and Price Target Trends

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