We Remain Positive On O’Reilly Automotive Shares, Says Wedbush


In a research report released today, Wedbush analyst Seth Basham reiterated an Outperform rating on O’Reilly Automotive (NASDAQ:ORLY) with a $180 price target, which represents a potential upside of 17% from where the stock is currently trading.

Basham noted, “After a strong start to the year, ORLY shares have continued to outperform retail, but have also stagnated in the $150 range over thepast six months despite continued very strong 21%+ average EPS growth over the past three quarters. Weather benefits are fading, comparisons are not easy, vehicle demographics may apply slight pressure on the industry into 2015 and valuation is above historical averages. Yet, we remain positive on ORLY shares as the company continues to deliver on an impressive formula: ~5% store growth, 3-5% comps, 40+ bps of operating margin expansion, improving payables leverage and hefty share repurchases. We believe this formula remains firmly intact, setting a clear path to quality, consistent mid-high-teens long-term EPS growth under the superb leadership of CEO Greg Henslee.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Seth Basham has a total average return of 10.4% and a 80.0% success rate. Basham has a 19.8% average return when recommending ORLY, and is ranked #1183 out of 3243 analysts.

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