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

Key Points

• Morgan Stanley raised its price target on Advance Auto Parts to $65 from $60, while keeping an equal weight rating. The new target implies about 12.7% upside from the prior close.
• Advance Auto Parts reported strong quarterly results, with EPS of $0.77 versus estimates of $0.39 and revenue of $2.61 billion versus expectations of $2.57 billion. Comparable sales rose 3.5% and adjusted operating margin expanded sharply.
• Analyst sentiment remains mixed overall: despite a few upgrades and higher targets, the stock still carries an average rating of “Reduce” and a consensus price target of $56.04. The shares opened at $57.67, above that consensus target.

Advance Auto Parts (NYSE:AAP - Get Free Report) had its price objective hoisted by stock analysts at Morgan Stanley from $60.00 to $65.00 in a note issued to investors on Friday, MarketBeat Ratings reports. The brokerage presently has an "equal weight" rating on the stock. Morgan Stanley's target price would suggest a potential upside of 12.72% from the company's previous close.

A number of other brokerages have also recently weighed in on AAP. TD Cowen reissued a "hold" rating on shares of Advance Auto Parts in a report on Tuesday, February 17th. Truist Financial set a $62.00 target price on shares of Advance Auto Parts in a research report on Thursday. Deutsche Bank Aktiengesellschaft raised shares of Advance Auto Parts to a "buy" rating in a research report on Friday. JPMorgan Chase & Co. decreased their target price on shares of Advance Auto Parts from $64.00 to $59.00 and set a "neutral" rating for the company in a report on Friday, May 15th. Finally, Roth Mkm reiterated a "neutral" rating and set a $57.00 target price on shares of Advance Auto Parts in a research note on Thursday, February 19th. Two investment analysts have rated the stock with a Buy rating, seventeen have assigned a Hold rating and four have assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Advance Auto Parts presently has an average rating of "Reduce" and a consensus price target of $56.04.

Advance Auto Parts Stock Performance

Shares of AAP opened at $57.67 on Friday. The company has a debt-to-equity ratio of 1.55, a current ratio of 1.75 and a quick ratio of 0.87. The firm has a market cap of $3.48 billion, a PE ratio of 79.70, a PEG ratio of 0.90 and a beta of 1.06. Advance Auto Parts has a 1 year low of $37.89 and a 1 year high of $70.00. The stock's fifty day moving average price is $53.84 and its two-hundred day moving average price is $50.37.

Advance Auto Parts (NYSE:AAP - Get Free Report) last released its earnings results on Thursday, May 21st. The company reported $0.77 EPS for the quarter, beating analysts' consensus estimates 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 prior year, the firm earned $0.40 earnings per share. The firm's revenue 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. On average, equities research analysts forecast that Advance Auto Parts will post 2.77 EPS for the current year.

Hedge Funds Weigh In On Advance Auto Parts

Several institutional investors have recently bought and sold shares of the business. Royal Bank of Canada increased its position in shares of Advance Auto Parts by 107.2% during the 1st quarter. Royal Bank of Canada now owns 79,558 shares of the company's stock valued at $3,119,000 after purchasing an additional 41,157 shares during the last quarter. Goldman Sachs Group Inc. raised its stake in shares of Advance Auto Parts by 327.7% during the 1st quarter. Goldman Sachs Group Inc. now owns 362,918 shares of the company's stock valued at $14,230,000 after buying an additional 278,066 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Advance Auto Parts by 14.6% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 180,979 shares of the company's stock worth $7,096,000 after acquiring an additional 23,018 shares during the period. Hsbc Holdings PLC increased its holdings in shares of Advance Auto Parts by 3.1% during the 2nd quarter. Hsbc Holdings PLC now owns 6,306 shares of the company's stock valued at $293,000 after purchasing an additional 191 shares in the last quarter. Finally, Baird Financial Group Inc. raised its position in shares of Advance Auto Parts by 2.7% in the second quarter. Baird Financial Group Inc. now owns 56,782 shares of the company's stock worth $2,640,000 after acquiring an additional 1,515 shares during the period. 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: 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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