In a report released yesterday, Zachary Fadem from Wells Fargo reiterated a Buy rating on AutoZone (NYSE: AZO), with a price target of $850. The company’s shares closed yesterday at $764.02, close to its 52-week high of $797.89.
“We remain constructive on AZO into FQ4, with positive industry read-throughs, manageable expectations, and plenty of room for valuation catch up vs. peers. We are raising our Q4 domestic comp estimate by +80bps to +2.8% based on peer outperformance, strong U.S. Census retail sales, favorable weather and accelerating CPI. Our revised estimate is +40bps above consensus, but 20bps below our view of ~3% buyside expectations. We see broader industry trends improving with a favorable consumer environment, expanding addressable market, margin upside potential, and potential tailwinds should tariffs ultimately drive new vehicle inflation (incentivizing consumers to keep/repair older vehicles).”
According to TipRanks.com, Fadem is a 4-star analyst with an average return of 15.1% and a 71.8% success rate. Fadem covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Floor & Decor Holdings Inc, and Advance Auto Parts.
Currently, the analyst consensus on AutoZone is a Strong Buy with an average price target of $801.80.
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Based on AutoZone’s latest earnings release for the quarter ending April 30, the company reported a quarterly net profit of $367 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.
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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.