Advance Auto Parts (NYSE:AAP) Price Target Lowered to $52.00 at Royal Bank Of Canada

Key Points

• Royal Bank of Canada cut Advance Auto Parts’ price target from $67 to $52 while maintaining a “sector perform” rating, implying approximately 22.7% upside from the reported share price.
• Analyst sentiment remains cautious, with a consensus “Hold” rating and average price target of $56.38; 18 analysts rate the stock Hold, compared with two Buys and one Sell.
• Advance Auto Parts exceeded quarterly EPS expectations ($1.03 versus $0.81) but reported revenue of about $2.0 billion, below estimates, with year-over-year revenue and comparable-store sales declining amid weaker DIY demand.

Advance Auto Parts (NYSE:AAP - Get Free Report) had its price target dropped by stock analysts at Royal Bank Of Canada from $67.00 to $52.00 in a research report issued on Friday,Benzinga reports. The firm currently has a "sector perform" rating on the stock. Royal Bank Of Canada's target price suggests a potential upside of 22.73% from the company's current price.

Other analysts also recently issued reports about the stock. Truist Financial set a $43.00 price objective on shares of Advance Auto Parts in a report on Thursday. TD Cowen set a $45.00 target price on shares of Advance Auto Parts in a research report on Thursday. JPMorgan Chase & Co. lowered their price target on shares of Advance Auto Parts from $64.00 to $59.00 and set a "neutral" rating on the stock in a research note on Friday, May 15th. Barclays set a $50.00 price target on shares of Advance Auto Parts in a research note on Friday. Finally, Evercore set a $65.00 price target on shares of Advance Auto Parts in a research report on Tuesday, August 4th. Two research analysts have rated the stock with a Buy rating, eighteen have assigned a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $56.38.

Advance Auto Parts Stock Down 24.6%

AAP stock opened at $42.37 on Friday. The company has a debt-to-equity ratio of 1.54, a current ratio of 1.78 and a quick ratio of 0.85. The stock has a market capitalization of $2.56 billion, a P/E ratio of 58.85, a P/E/G ratio of 0.93 and a beta of 1.03. Advance Auto Parts has a fifty-two week low of $37.89 and a fifty-two week high of $65.21. The business has a 50-day moving average of $56.94 and a 200-day moving average of $55.43.

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

Institutional Trading of Advance Auto Parts

Several institutional investors and hedge funds have recently bought and sold shares of the business. BlackRock Inc. bought a new position in shares of Advance Auto Parts in the second quarter valued at about $581,909,000. Pzena Investment Management LLC acquired a new stake in Advance Auto Parts during the second quarter worth approximately $273,115,000. Price T Rowe Associates Inc. MD boosted its holdings in shares of Advance Auto Parts by 18.9% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 7,474,546 shares of the company's stock worth $293,751,000 after acquiring an additional 1,190,094 shares during the period. Maple Rock Capital Partners Inc. increased its stake in shares of Advance Auto Parts by 86.5% during the second quarter. Maple Rock Capital Partners Inc. now owns 2,421,040 shares of the company's stock worth $150,637,000 after purchasing an additional 1,122,900 shares during the period. Finally, Bank of America Corp DE acquired a new stake in Advance Auto Parts during the 2nd quarter worth approximately $59,626,000. Institutional investors own 88.70% of the company's stock.

Trending Headlines about Advance Auto Parts

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

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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