Advance Auto Parts (NYSE:AAP) Price Target Cut to $52.00 by Analysts at Morgan Stanley

Key Points

• Morgan Stanley cut Advance Auto Parts’ price target to $52 from $65 while maintaining an “equal weight” rating, implying roughly 21% upside from the prior close.
• Analyst sentiment remains cautious: the stock has an overall “Hold” rating, with an average price target of $53.68, while several firms recently reduced targets or reiterated neutral/sell views.
• Advance Auto Parts beat quarterly EPS expectations at $1.03 versus $0.81, but revenue declined 0.5% year over year and missed estimates, reflecting weak DIY demand and consumer spending concerns.

Advance Auto Parts (NYSE:AAP - Get Free Report) had its target price reduced by stock analysts at Morgan Stanley from $65.00 to $52.00 in a note issued to investors on Friday,Benzinga reports. The firm presently has an "equal weight" rating on the stock. Morgan Stanley's price objective suggests a potential upside of 21.27% from the company's previous close.

A number of other equities analysts have also recently commented on the stock. Weiss Ratings raised shares of Advance Auto Parts from a "sell (d+)" rating to a "hold (c-)" rating in a research note on Friday, May 29th. Wells Fargo & Company set a $50.00 price objective on shares of Advance Auto Parts in a report on Friday. Guggenheim reiterated a "neutral" rating on shares of Advance Auto Parts in a research report on Friday. Truist Financial set a $43.00 target price on Advance Auto Parts in a research note on Thursday. Finally, Barclays set a $50.00 price target on Advance Auto Parts in a research report on Friday. Two equities research analysts have rated the stock with a Buy rating, eighteen have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, Advance Auto Parts has an average rating of "Hold" and an average price target of $53.68.

Advance Auto Parts Price Performance

Shares of AAP traded up $0.49 during trading hours on Friday, reaching $42.88. 725,910 shares of the company's stock traded hands, compared to its average volume of 1,892,113. Advance Auto Parts has a 12 month low of $37.89 and a 12 month high of $65.21. The company has a current ratio of 1.78, a quick ratio of 0.85 and a debt-to-equity ratio of 1.54. The stock has a market cap of $2.59 billion, a PE ratio of 59.56, a price-to-earnings-growth ratio of 0.93 and a beta of 1.03. The firm's 50 day simple moving average is $56.94 and its 200-day simple moving average is $55.43.

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

Hedge Funds Weigh In On Advance Auto Parts

Institutional investors and hedge funds have recently bought and sold shares of the stock. Dimensional Fund Advisors LP grew its stake in shares of Advance Auto Parts by 15.3% in the first 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 during the last quarter. Bank of America Corp DE increased its holdings in Advance Auto Parts by 4.5% during the 1st 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. Private Management Group Inc. bought a new position in Advance Auto Parts during the 4th quarter valued at approximately $20,123,000. Royce & Associates LP raised its position in Advance Auto Parts by 30.5% during the 4th 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 during the last quarter. Finally, Fifth Third Bancorp lifted its holdings in Advance Auto Parts by 3,521.7% in the 1st quarter. Fifth Third Bancorp now owns 51,827 shares of the company's stock worth $2,734,000 after buying an additional 50,396 shares during the period. 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: Quarterly earnings exceeded expectations. Advance Auto Parts reported adjusted earnings of $1.03 per share, above the $0.81 consensus estimate and up from $0.69 a year earlier. Gross margin improved to 46.2% from 43.5%, while operating income increased substantially. Advance Auto Parts Reports Second Quarter 2026 Results
• Positive Sentiment: A $26 million tariff refund boosted margins. The refund provided a temporary benefit to second-quarter profitability, and the company also expanded its product catalog with thousands of additional SKUs. Tariff Refund and Product Expansion
• Positive Sentiment: Balance-sheet progress and the dividend offer support. Advance reduced debt by approximately $30 million during the quarter, lowered net leverage to 2.1 times from 2.4 times, and declared a quarterly dividend of $0.25 per share, representing an annualized yield of approximately 2.4%.
• Neutral Sentiment: Full-year guidance was maintained or modestly raised on earnings. Fiscal 2026 adjusted EPS guidance is $2.60 to $3.30, compared with the $2.94 analyst consensus, while revenue guidance of approximately $8.49 billion to $8.57 billion remains near expectations. Revenue Miss and Muted Outlook
• Negative Sentiment: Revenue and comparable-store sales missed expectations. Quarterly revenue was about $2.0 billion versus roughly $2.04 billion expected, declined 0.5% year over year, and comparable-store sales fell 0.5%. Weak do-it-yourself demand and constrained consumer spending raised concerns about underlying sales momentum. Weak DIY Demand
• Negative Sentiment: Analysts lowered their expectations. RBC cut its price target to $52 from $67 and assigned a “sector perform” rating, while DA Davidson reduced its target to $48 from $58 and rated the stock “neutral.” Bank of America reiterated a Sell rating with a $48 target, citing DIY weakness and execution risks.

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.

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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