Royal Bank Of Canada Forecasts Strong Price Appreciation for Advance Auto Parts (NYSE:AAP) Stock

Key Points

• Royal Bank of Canada raised its price target on Advance Auto Parts to $51 from $49 while maintaining a “sector perform” rating, implying 10.48% upside from the prior close.
• Analyst sentiment remains cautious: MarketBeat reports a consensus “Hold” rating and an average price target of $47.72, with 15 analysts rating the stock Hold, three Buy, and three Sell.
• Advance Auto Parts beat Q3 EPS estimates ($0.79 versus $0.77), but revenue missed forecasts at $2.01 billion and fell 1.2% year over year; the company also narrowed its full-year 2026 outlook.

Advance Auto Parts (NYSE:AAP - Get Free Report) had its target price increased by equities research analysts at Royal Bank Of Canada from $49.00 to $51.00 in a research note issued on Friday, Benzinga reports. The firm currently has a "sector perform" rating on the stock. Royal Bank Of Canada's price target suggests a potential upside of 10.48% from the company's previous close.

A number of other research firms have also commented on AAP. Wells Fargo & Company lowered their price target on Advance Auto Parts from $60.00 to $50.00 and set an "equal weight" rating for the company in a research report on Friday, August 21st. BMO Capital Markets reiterated a "market perform" rating on shares of Advance Auto Parts in a research note on Friday, August 21st. Guggenheim reiterated a "neutral" rating on shares of Advance Auto Parts in a research note on Friday, August 21st. Evercore reiterated a "positive" rating on shares of Advance Auto Parts in a report on Friday. Finally, TD Cowen dropped their price target on shares of Advance Auto Parts from $61.00 to $45.00 and set a "hold" rating on the stock in a research report on Thursday, August 20th. Three investment analysts have rated the stock with a Buy rating, fifteen have assigned a Hold rating and three have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has an average rating of "Hold" and a consensus target price of $47.72.

Advance Auto Parts Stock Down 4.1%

NYSE:AAP traded down $1.96 during trading hours on Friday, reaching $46.16. The company had a trading volume of 420,202 shares, compared to its average volume of 1,855,662. Advance Auto Parts has a twelve month low of $37.89 and a twelve month high of $65.20. The company has a quick ratio of 0.85, a current ratio of 1.75 and a debt-to-equity ratio of 1.50. The firm has a market cap of $2.79 billion, a price-to-earnings ratio of 33.69, a P/E/G ratio of 0.98 and a beta of 1.02. The business's 50-day simple moving average is $43.26 and its two-hundred day simple moving average is $51.71.

Advance Auto Parts (NYSE:AAP - Get Free Report) last released its quarterly earnings data on Thursday, November 5th. The company reported $0.79 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.77 by $0.02. The company had revenue of $2.01 billion for the quarter, compared to analysts' expectations of $2.04 billion. Advance Auto Parts had a net margin of 0.97% and a return on equity of 9.84%. The business's revenue was down 1.2% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.92 EPS. On average, equities analysts expect that Advance Auto Parts will post 2.92 earnings per share for the current year.

Institutional Investors Weigh In On Advance Auto Parts

A number of hedge funds have recently made changes to their positions in the business. Allworth Financial LP bought a new stake in Advance Auto Parts during the second quarter valued at approximately $25,000. State of Wyoming purchased a new position in Advance Auto Parts in the 2nd quarter worth approximately $34,000. Pinnacle Wealth Planning Services Inc. increased its holdings in shares of Advance Auto Parts by 27.4% in the 3rd quarter. Pinnacle Wealth Planning Services Inc. now owns 1,701 shares of the company's stock worth $66,000 after buying an additional 366 shares during the last quarter. PNC Financial Services Group Inc. increased its holdings in shares of Advance Auto Parts by 9.9% in the 1st quarter. PNC Financial Services Group Inc. now owns 2,224 shares of the company's stock worth $117,000 after buying an additional 200 shares during the last quarter. Finally, Nykredit A S purchased a new stake in shares of Advance Auto Parts during the 2nd quarter valued at $155,000. 88.70% of the stock is currently owned by institutional investors.

Advance Auto Parts News Roundup

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

• Positive Sentiment: AAP reported Q3 adjusted earnings of $0.79 per share, topping the $0.77 analyst consensus. The company also declared a $0.25 dividend. Article: Advance Auto Parts Q3 Earnings Top Estimates Article: Advance Auto Parts declares $0.25 dividend
• Negative Sentiment: Revenue of $2.01 billion missed analysts’ $2.04 billion estimate and declined 1.2% year over year. EPS also fell from $0.92 a year earlier, pointing to ongoing sales and earnings pressure. Article: Advance Auto Parts reports Q3 results
• Negative Sentiment: The company narrowed its full-year 2026 outlook. The update, alongside the revenue shortfall, was reported as a reason shares fell in premarket trading despite the EPS beat. Article: Advance Auto Parts narrows 2026 outlook

About Advance Auto Parts

Advance Auto Parts, Inc is a specialty retailer and distributor of automotive aftermarket parts, accessories, and maintenance products. The company serves both do-it-yourself customers and professional repair shops, offering products such as replacement parts, batteries, engine and drivetrain components, filters, fluids, tools, and other automotive supplies.

The company operates through a network of stores, distribution centers, and online channels under the Advance Auto Parts and Carquest brands.

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