In a report released today, Zachary Fadem from Wells Fargo maintained a Buy rating on O’Reilly Auto (ORLY), with a price target of $385. The company’s shares closed on Friday at $346.75, close to its 52-week high of $363.20.
Fadem noted:
“We believe investor expectations for Q4 are largely aligned with consensus, but given recent outperformance over the past 3 months (+8% vs. -0.2% SPX), we wouldn’t be surprised to see profit taking on an in line print and conservative FY19 outlook. We believe investors are roughly expecting the FY19 outlook to feature 2-4% comps (vs. our +3.2%), flattish EBIT margins of ~19% (in line with our model), and ~7-8% EPS growth ex-buybacks (implying ~10% with buybacks). We would view this outlook as achievable, and likely beatable should weather, oil prices and industry/macro continue to trend in the right direction.”
According to TipRanks.com, Fadem is a 4-star analyst with an average return of 4.4% and a 58.7% success rate. Fadem covers the Services sector, focusing on stocks such as National Vision Holdings Inc, Floor & Decor Holdings Inc, and Advance Auto Parts.
O’Reilly Auto has an analyst consensus of Strong Buy, with a price target consensus of $391.40.
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The company has a one-year high of $363.20 and a one-year low of $217.64. Currently, O’Reilly Auto has an average volume of 696.4K.
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O’Reilly Automotive, Inc. owns and operates retail outlets in the United States. It engages in the distribution and retailing of automotive aftermarket parts, tools, supplies, equipment, and accessories in the U.S., serving both professional installers and do-it-yourself customers.
