Oppenheimer analyst Brian Nagel maintained a Buy rating on AutoZone (NYSE: AZO) today and set a price target of $860. The company’s shares closed yesterday at $732.76.
Nagel noted:
“Yesterday morning, Outperform-rated AutoZone (AZO) reported results for fiscal Q4:18 (16-week period ending Aug. 25th). Shares closed the day down about 2%, recovering from an initial 6% decline, as investors fretted over a seemingly softer than expected comp sales performance (+2.2% vs. a Street forecast of +2.5%). As we examined closely Q4 trends at AZO, we come away with the view that any “miss” in comp sales reflected largely transitory factors, including a rare operational blip from a historically steady management team, and masked improving, underlying top-line strength at the chain, particularly in the commercial business. We continue to look favorably upon prospects for Auto Parts retail in an improving macro backdrop for the group. AZO represents our preferred value play within the space.”
According to TipRanks.com, Nagel is a 5-star analyst with an average return of 10.7% and a 66.8% success rate. Nagel covers the Services sector, focusing on stocks such as Weight Watchers International, Lululemon Athletica Inc, and Dick’s Sporting Goods.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for AutoZone with a $815 average price target, representing an 11.2% upside. In a report issued on September 12, Wells Fargo also reiterated a Buy rating on the stock with a $850 price target.
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Based on AutoZone’s latest earnings release for the quarter ending August 31, the company reported a quarterly net profit of $400 million. In comparison, last year the company had a net profit of $434 million.
Based on the recent corporate insider activity of 53 insiders, corporate insider sentiment is negative on the stock. Last month, Albert Saltiel, the SVP of AZO sold 2,150 shares for a total of $1,543,485.
TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities.
AutoZone, Inc. engages in the provision of retail and a distribution of automotive replacement parts and accessories. It operates through Auto Parts Locations, and Other segments. The Auto Parts Locations segment is provides automotive parts and accessories through the company’s stores in the United States, Puerto Rico, Mexico, and Brazil.
