Advance Auto Parts (NYSE:AAP) Price Target Raised to $65.00

Key Points

• BMO Capital Markets raised its price target on Advance Auto Parts to $65 from $60, implying about 10.94% upside, while keeping a market perform rating.
• Advance Auto Parts reported a strong quarter, with EPS of $0.77 versus the $0.39 estimate and revenue of $2.61 billion topping expectations. Comparable sales also rose 3.5%, and adjusted operating margin improved sharply.
• Despite the upbeat results, analyst sentiment remains cautious overall: the stock has a consensus rating of "Reduce" and an average price target of $54.30, even as several firms adjusted views this week.

Advance Auto Parts (NYSE:AAP - Get Free Report) had its price target increased by equities research analysts at BMO Capital Markets from $60.00 to $65.00 in a note issued to investors on Friday,Benzinga reports. The firm presently has a "market perform" rating on the stock. BMO Capital Markets' target price suggests a potential upside of 10.94% from the stock's current price.

A number of other research firms also recently weighed in on AAP. Wells Fargo & Company reaffirmed a "negative" rating and set a $60.00 price target on shares of Advance Auto Parts in a research report on Friday. Deutsche Bank Aktiengesellschaft raised shares of Advance Auto Parts to a "buy" rating in a research report on Friday. The Goldman Sachs Group restated a "sell" rating and set a $54.00 target price on shares of Advance Auto Parts in a report on Friday. DA Davidson set a $58.00 target price on shares of Advance Auto Parts in a research report on Tuesday, February 17th. Finally, UBS Group reiterated a "neutral" rating on shares of Advance Auto Parts in a research note on Monday, February 9th. Two investment analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and four have given a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Reduce" and an average price target of $54.30.

Advance Auto Parts Trading Up 14.3%

AAP opened at $58.59 on Friday. The firm's fifty day moving average is $53.84 and its two-hundred day moving average is $50.37. The firm has a market cap of $3.53 billion, a PE ratio of 80.26, a price-to-earnings-growth ratio of 0.90 and a beta of 1.06. Advance Auto Parts has a twelve month low of $37.89 and a twelve month high of $70.00. The company has a debt-to-equity ratio of 1.55, a quick ratio of 0.87 and a current ratio of 1.75.

Advance Auto Parts (NYSE:AAP - Get Free Report) last released its quarterly earnings data on Thursday, May 21st. The company reported $0.77 earnings per share for the quarter, beating the consensus estimate of $0.39 by $0.38. Advance Auto Parts had a return on equity of 6.23% and a net margin of 0.51%.The business had revenue of $2.61 billion for the quarter, compared to analysts' expectations of $2.57 billion. During the same quarter in the previous year, the business posted $0.40 EPS. Advance Auto Parts's revenue for the quarter was up 1.2% on a year-over-year basis. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.100 EPS. Equities research analysts anticipate that Advance Auto Parts will post 2.77 EPS for the current year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of AAP. American Century Companies Inc. raised its holdings in shares of Advance Auto Parts by 559.0% in the 3rd quarter. American Century Companies Inc. now owns 1,519,591 shares of the company's stock valued at $93,303,000 after purchasing an additional 1,288,986 shares during the period. Price T Rowe Associates Inc. MD grew its holdings in 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 purchasing an additional 1,190,094 shares during the period. Maple Rock Capital Partners Inc. increased its position in Advance Auto Parts by 508.2% during the third quarter. Maple Rock Capital Partners Inc. now owns 951,790 shares of the company's stock worth $58,440,000 after buying an additional 795,290 shares during the last quarter. Wellington Management Group LLP acquired a new position in Advance Auto Parts during the third quarter worth approximately $33,610,000. Finally, Private Management Group Inc. bought a new stake in Advance Auto Parts in the fourth quarter valued at approximately $20,123,000. Institutional investors own 88.70% of the company's stock.

Advance Auto Parts News Roundup

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

• Positive Sentiment: Q1 adjusted EPS came in at $0.77, well above the $0.39 consensus, while revenue of $2.61 billion also topped expectations. Why Advance Auto Parts Stock Skyrocketed Today
• Positive Sentiment: Comparable sales rose 3.5%, with strength in both Pro and DIY channels, suggesting improving customer demand and better execution. Advance Auto Parts surges as Q1 results show comps and margins rebounding
• Positive Sentiment: Margins improved sharply, with adjusted operating margin expanding to 3.8%, up about 410 basis points year over year, reinforcing the view that the recovery is gaining traction. Advance Auto Parts Gets Sales Boost From Pro Business
• Neutral Sentiment: The company reaffirmed full-year 2026 guidance instead of raising it, which may temper some enthusiasm even after the strong quarter.
• Neutral Sentiment: Advance Auto Parts also declared a quarterly dividend of $0.25 per share, adding some income appeal but not a major short-term catalyst.

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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