Wedbush Reiterates Neutral On AutoZone Following F1Q15 Results
Wedbush analyst Seth Basham reiterated a Neutral rating on AutoZone Inc (NYSE:AZO) with a $550 price target, which represents a potential downside of 9% from where the stock is currently trading.
Basham noted, “AZO put up very strong top-line results that we believe bode well for the sector as the companies begin to lap very tough winter weather comparisons in December and early January. We believe AZO’s 4.5% comp vs. our mid-high 2% estimate and consensus 2.4% benefitted from strong underlying trends and favorable weather in November (including consumers preparing earlier for the winter), along with lower gas prices. AZO’s comments on its call about trends F2Q-to-date as it is already lapping tough weather compares will be important, but we expect a positive tone, suggesting consensus F2Q comp expectations of 1.3% are more than reasonable. Despite the strong run for AZO and the sector, we expect the group to continue its move higher today.”
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 12.3% and a 73.3% success rate. Basham is ranked #931 out of 3401 analysts.