Oppenheimer analyst Brian Nagel maintained a Hold rating on Advance Auto Parts (NYSE: AAP) today. The company’s shares opened today at $153.34, close to its 52-week high of $159.50.
Nagel wrote:
“We have for a while highlighted auto parts retail as one of the most compelling categories within broader retail, given prospects for an improving demand backdrop, still depressed valuations, and persistent outsized returns on capital. So far, we have monitored Advance Auto Parts (AAP) from the sidelines, upon concerns that a successful turnaround at the chain would take a long while to gain traction. The better than expected Q2 (Jul.) results that the company reported today, combined with signals of underlying strength in the prior quarter, are indeed piquing our interest and beginning to convince us that under new leadership, AAP might now be finding its footing, particularly as sector dynamics improve. We continue to monitor AAP closely.”
According to TipRanks.com, Nagel is a 5-star analyst with an average return of 8.1% and a 64.5% success rate. Nagel covers the Services sector, focusing on stocks such as Restoration Hardware Holdings Inc, Dick’s Sporting Goods, and Lumber Liquidators.
Advance Auto Parts has an analyst consensus of Moderate Buy, with a price target consensus of $147.88.
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Based on Advance Auto Parts’ latest earnings release for the quarter ending April 30, the company reported a quarterly net profit of $137 million. In comparison, last year the company had a net profit of $87.05 million.
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Advance Auto Parts, Inc. engages in the supply and distribution of aftermarket automotive products for professional installers, do-it-yourself customers, and independently owned operators. It offers automotive parts and batteries, accessories and chemicals, and engine maintenance.
