Monro Inc., an automotive undercar repair and tire services provider, has appointed Michael Broderick as president and chief executive officer (CEO) of the company.
Monro (MNRO) announced that Broderick will join the board and will take up the new role, effective from April 5. Robert Mellor has been serving as the company’s interim CEO since Aug. 2020, when Brett Ponton resigned from the CEO position to pursue other opportunities. Mellor will then continue as Monro’s chairman of the board.
The company said that Broderick has over 25 years of experience in the aftermarket parts and tire service industry, and has recently served as the executive vice president of merchandising and store operations support at Advance Auto Parts (AAP).
Following the new CEO appointment, Oppenheimer analyst Brian Nagel maintained a Hold rating on the stock. In a note to investors, the analyst said, “We are encouraged by the ability of MNRO and the company’s board of directors to recruit a seasoned executive with more than two decades of experience in auto parts and other areas of retail to lead the organization.”
On Jan. 27, Monro reported lower-than-expected 3Q results, wherein earnings of $0.22 per share fell short of analysts’ estimates of $0.38 per share. Revenues of $284.6 million also missed the consensus estimate of $299.4 million. (See Monro stock analysis on TipRanks)
Overall, consensus among analysts is a Hold based on 2 unanimous Holds. The average analyst price target of $62 implies downside potential of about 11.3% to current levels. Shares have gained 41.7% over the past year.
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