Advance Auto Parts (NYSE:AAP) Given New $67.00 Price Target at Royal Bank Of Canada

Key Points

• Royal Bank of Canada raised Advance Auto Parts’ price target to $67 from $65 while maintaining a “sector perform” rating, implying 20.55% upside from the prior close.
• Analyst sentiment remains broadly cautious: the stock has a consensus “Hold” rating and a $59.09 average price target, based on two Buy, 17 Hold, and one Sell recommendation.
• Advance Auto Parts exceeded quarterly expectations, reporting $0.77 in EPS versus $0.39 forecast and $2.61 billion in revenue versus $2.05 billion expected; revenue increased 1.2% year over year.

Advance Auto Parts (NYSE:AAP - Get Free Report) had its price target lifted by analysts at Royal Bank Of Canada from $65.00 to $67.00 in a research report issued to clients and investors on Thursday,Benzinga reports. The brokerage currently has a "sector perform" rating on the stock. Royal Bank Of Canada's price objective indicates a potential upside of 20.55% from the stock's previous close.

Other research analysts also recently issued research reports about the company. Weiss Ratings raised Advance Auto Parts from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Friday, May 29th. Deutsche Bank Aktiengesellschaft raised Advance Auto Parts to a "buy" rating in a research note on Friday, May 22nd. TD Cowen reissued a "hold" rating on shares of Advance Auto Parts in a research note on Friday, May 22nd. Morgan Stanley boosted their price target on shares of Advance Auto Parts from $60.00 to $65.00 and gave the stock an "equal weight" rating in a research report on Friday, May 22nd. Finally, Citigroup reaffirmed a "neutral" rating on shares of Advance Auto Parts in a research note on Thursday. Two research analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Hold" and a consensus price target of $59.09.

Advance Auto Parts Price Performance

AAP traded up $2.06 on Thursday, hitting $55.58. 309,842 shares of the stock were exchanged, compared to its average volume of 1,796,975. The firm has a market capitalization of $3.36 billion, a price-to-earnings ratio of 77.12, a PEG ratio of 0.87 and a beta of 1.03. The company has a debt-to-equity ratio of 1.54, a current ratio of 1.78 and a quick ratio of 0.85. Advance Auto Parts has a 12 month low of $37.89 and a 12 month high of $65.21. The business has a 50-day moving average of $57.43 and a two-hundred day moving average of $55.17.

Advance Auto Parts (NYSE:AAP - Get Free Report) last issued its earnings results on Thursday, May 21st. The company reported $0.77 earnings per share for the quarter, beating analysts' consensus estimates of $0.39 by $0.38. Advance Auto Parts had a return on equity of 8.95% and a net margin of 0.51%.The firm had revenue of $2.61 billion for the quarter, compared to the consensus estimate of $2.05 billion. During the same quarter last year, the business posted $0.40 EPS. The company's revenue was up 1.2% compared to the same quarter last year. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.100 EPS. Sell-side analysts forecast that Advance Auto Parts will post 2.94 EPS for the current fiscal year.

Institutional Trading of Advance Auto Parts

Large investors have recently modified their holdings of the stock. Dimensional Fund Advisors LP boosted its stake in Advance Auto Parts by 15.3% during the first quarter. Dimensional Fund Advisors LP now owns 2,127,948 shares of the company's stock worth $112,243,000 after acquiring an additional 282,591 shares in the last quarter. Royce & Associates LP increased its stake in Advance Auto Parts by 30.5% in the fourth quarter. Royce & Associates LP now owns 1,478,633 shares of the company's stock valued at $58,110,000 after purchasing an additional 345,217 shares in the last quarter. Private Management Group Inc. acquired a new position in shares of Advance Auto Parts during the fourth quarter valued at about $20,123,000. Bank of America Corp DE raised its holdings in shares of Advance Auto Parts by 4.5% during the first quarter. Bank of America Corp DE now owns 1,056,281 shares of the company's stock valued at $55,719,000 after purchasing an additional 45,696 shares during the period. Finally, Fifth Third Bancorp boosted its position in shares of Advance Auto Parts by 3,521.7% during the 1st quarter. Fifth Third Bancorp now owns 51,827 shares of the company's stock worth $2,734,000 after purchasing an additional 50,396 shares in the last quarter. Institutional investors and hedge funds own 88.70% of the company's stock.

About Advance Auto Parts

Advance Auto Parts, Inc NYSE: AAP is a leading distributor of automotive aftermarket parts, accessories, and maintenance items. The company operates a network of stores and distribution centers across North America, serving both do-it-yourself (DIY) customers and professional service providers. Advance Auto Parts focuses on offering a comprehensive selection of replacement parts, batteries, engine components, and performance products for cars and light trucks.

The company's product portfolio includes engine oils and lubricants, cooling system components, brake and suspension parts, filters, belts, hoses, and diagnostic tools.

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