Advance Auto Parts (NYSE:AAP) Price Target Cut to $48.00 by Analysts at DA Davidson

Key Points

• DA Davidson lowered Advance Auto Parts’ price target from $58 to $48 while maintaining a “neutral” rating. The new target implies roughly 13.3% upside from the stock’s reported $42.37 price.
• Analyst sentiment remains cautious: the stock has an average “Hold” rating and a consensus target of $56.38, with 18 analysts rating it a Hold versus two Buys and one Sell.
• Advance Auto Parts beat quarterly EPS estimates, reporting $1.03 versus expectations of $0.81, but revenue of about $2.0 billion missed estimates and declined year over year amid weaker DIY demand. Management’s full-year EPS guidance remains $2.60–$3.30.

Advance Auto Parts (NYSE:AAP - Get Free Report) had its price target lowered by DA Davidson from $58.00 to $48.00 in a research report issued on Friday,Benzinga reports. The firm presently has a "neutral" rating on the stock. DA Davidson's target price would suggest a potential upside of 13.29% from the stock's current price.

Several other brokerages also recently issued reports on AAP. Citigroup lowered their price target on Advance Auto Parts from $60.00 to $57.00 and set a "neutral" rating for the company in a report on Thursday, August 13th. UBS Group reiterated a "neutral" rating on shares of Advance Auto Parts in a report on Friday. Evercore set a $65.00 price objective on Advance Auto Parts in a research report on Tuesday, August 4th. TD Cowen set a $45.00 target price on Advance Auto Parts in a research note on Thursday. Finally, Weiss Ratings upgraded shares of Advance Auto Parts from a "sell (d+)" rating to a "hold (c-)" rating in a report on Friday, May 29th. Two research analysts have rated the stock with a Buy rating, eighteen have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $56.38.

Advance Auto Parts Stock Down 24.6%

NYSE AAP opened at $42.37 on Friday. Advance Auto Parts has a twelve month low of $37.89 and a twelve month high of $65.21. The company has a debt-to-equity ratio of 1.54, a quick ratio of 0.85 and a current ratio of 1.78. The stock has a market cap of $2.56 billion, a PE ratio of 58.85, a PEG ratio of 0.93 and a beta of 1.03. The firm has a 50-day simple moving average of $56.94 and a 200 day simple moving average of $55.43.

Advance Auto Parts (NYSE:AAP - Get Free Report) last issued its quarterly earnings results on Thursday, August 20th. The company reported $1.03 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.81 by $0.22. The business had revenue of $2 billion for the quarter, compared to the consensus estimate of $2.04 billion. Advance Auto Parts had a net margin of 0.51% and a return on equity of 8.95%. The firm's quarterly revenue was down .5% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.69 EPS. Advance Auto Parts has set its FY 2026 guidance at 2.600-3.300 EPS. On average, research analysts forecast that Advance Auto Parts will post 2.94 EPS for the current year.

Institutional Inflows and Outflows

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

Key Advance Auto Parts News

Here are the key news stories impacting Advance Auto Parts this week:

• Positive Sentiment: AAP reported adjusted second-quarter earnings of $1.03 per share, well above the $0.81 analyst consensus and up from $0.69 a year earlier. Gross margin improved to 46.2% from 43.5%, while operating income rose substantially. Advance Auto Parts Q2 Earnings Surpass Estimates
• Positive Sentiment: Management raised or maintained its full-year adjusted EPS outlook at $2.60-$3.30 and is continuing to reduce leverage. The company repaid approximately $30 million of debt principal during the quarter, lowering net leverage to 2.1 times from 2.4 times. Advance Auto Parts Q2 Takes a Hit on Weak DIY Demand
• Positive Sentiment: The company declared a quarterly dividend of $0.25 per share, providing an annualized yield of approximately 2.4% at the reported price level.
• Neutral Sentiment: Some analysts view the selloff as a potential near-term opportunity, while institutional trading was mixed, with several funds adding shares and others reducing or exiting positions. Advance Auto Parts Upgrade
• Negative Sentiment: Revenue of approximately $2.0 billion missed estimates near $2.04 billion, declined year over year, and comparable-store sales fell 0.5%. Investors were particularly concerned about weaker do-it-yourself demand and “constrained” customer spending. Cash-Strapped DIY Customers Tap the Brakes
• Negative Sentiment: Bank of America analyst Robert Ohmes reiterated a Sell/Underperform rating with a $48 price target, citing ongoing DIY weakness and execution risks. Bank of America Sell Rating

Advance Auto Parts Company Profile

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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