AutoZone (NYSE:AZO) Price Target Cut to $3,600.00 by Analysts at Robert W. Baird

Key Points

• Robert W. Baird cut AutoZone’s price target from $3,900 to $3,600 and kept a neutral rating, implying about 16% upside from the prior close.
• AutoZone shares fell 9% and opened at $3,100.16, near the lower end of its 52-week range, despite the company’s strong longer-term valuation metrics and analyst consensus of Moderate Buy.
• Latest earnings beat expectations, with EPS of $38.07 topping estimates, while revenue rose 8.4% year over year to $4.84 billion, though sales still came in slightly below consensus.

AutoZone (NYSE:AZO - Get Free Report) had its price target reduced by Robert W. Baird from $3,900.00 to $3,600.00 in a research note issued to investors on Wednesday,Benzinga reports. The brokerage currently has a "neutral" rating on the stock. Robert W. Baird's target price indicates a potential upside of 16.12% from the stock's previous close.

A number of other research analysts also recently weighed in on the company. TD Cowen cut their price target on AutoZone from $4,400.00 to $4,250.00 and set a "buy" rating on the stock in a research note on Monday, March 16th. Citigroup increased their price target on AutoZone from $4,200.00 to $4,300.00 and gave the company a "buy" rating in a research note on Wednesday, March 4th. Morgan Stanley increased their price target on AutoZone from $4,000.00 to $4,020.00 and gave the company an "overweight" rating in a research note on Wednesday, March 4th. Evercore reissued an "outperform" rating on shares of AutoZone in a research note on Tuesday. Finally, UBS Group set a $4,800.00 price objective on AutoZone in a research note on Tuesday, March 3rd. One investment analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat, AutoZone presently has an average rating of "Moderate Buy" and a consensus price target of $4,277.87.

AutoZone Stock Down 9.0%

AZO stock opened at $3,100.16 on Wednesday. The business's fifty day moving average is $3,448.20 and its 200-day moving average is $3,579.65. The company has a market cap of $51.08 billion, a P/E ratio of 21.72, a price-to-earnings-growth ratio of 1.74 and a beta of 0.43. AutoZone has a twelve month low of $3,001.00 and a twelve month high of $4,388.11.

AutoZone (NYSE:AZO - Get Free Report) last posted its quarterly earnings results on Tuesday, May 26th. The company reported $38.07 earnings per share for the quarter, beating analysts' consensus estimates of $36.22 by $1.85. The company had revenue of $4.84 billion for the quarter, compared to the consensus estimate of $4.86 billion. AutoZone had a negative return on equity of 72.31% and a net margin of 12.47%.The firm's quarterly revenue was up 8.4% on a year-over-year basis. During the same quarter in the prior year, the business posted $35.36 EPS. Research analysts anticipate that AutoZone will post 149.16 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, Director Earl G. Graves, Jr. sold 50 shares of the firm's stock in a transaction on Friday, April 10th. The stock was sold at an average price of $3,478.72, for a total transaction of $173,936.00. Following the sale, the director owned 4,837 shares of the company's stock, valued at approximately $16,826,568.64. This trade represents a 1.02% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. Insiders own 2.60% of the company's stock.

Hedge Funds Weigh In On AutoZone

Large investors have recently added to or reduced their stakes in the company. Banco Bilbao Vizcaya Argentaria S.A. increased its holdings in AutoZone by 6.6% during the 3rd quarter. Banco Bilbao Vizcaya Argentaria S.A. now owns 4,966 shares of the company's stock worth $21,315,000 after purchasing an additional 306 shares in the last quarter. Summit Global Investments grew its holdings in shares of AutoZone by 132.8% in the 3rd quarter. Summit Global Investments now owns 319 shares of the company's stock valued at $1,369,000 after acquiring an additional 182 shares in the last quarter. Numerai GP LLC grew its holdings in shares of AutoZone by 1,199.3% in the 3rd quarter. Numerai GP LLC now owns 1,754 shares of the company's stock valued at $7,525,000 after acquiring an additional 1,619 shares in the last quarter. Foundations Investment Advisors LLC bought a new position in shares of AutoZone in the 3rd quarter valued at about $678,000. Finally, Caprock Group LLC bought a new position in shares of AutoZone in the 3rd quarter valued at about $4,049,000. Institutional investors own 92.74% of the company's stock.

Key AutoZone News

Here are the key news stories impacting AutoZone this week:

• Positive Sentiment: AutoZone posted EPS of $38.07, topping Wall Street estimates, and sales still rose 8.4% year over year to about $4.84 billion, helped by strong domestic demand and same-store sales growth. Article Title
• Positive Sentiment: The company said repair demand remains resilient, with domestic same-store sales up and commercial growth continuing to support the business. Article Title
• Neutral Sentiment: Broader market sentiment was supportive, with the Nasdaq rallying and risk appetite improving, which may help cushion some of the selling pressure. Article Title
• Negative Sentiment: Revenue came in slightly below expectations, and multiple reports say the stock fell sharply as investors reacted to the miss despite the earnings beat. Article Title
• Negative Sentiment: Margins compressed, with commentary pointing to a non-cash LIFO headwind and weaker international performance, which raised concerns about profitability and ROIC. Article Title

AutoZone Company Profile

AutoZone, Inc NYSE: AZO is a retailer and distributor of automotive replacement parts and accessories. Headquartered in Memphis, Tennessee, the company supplies a wide range of aftermarket components, maintenance items and accessories for passenger cars, light trucks and commercial vehicles. Its product assortment includes engine parts, electrical components, batteries, brakes, filters, fluids and interior and exterior accessories, supported by inventory management and logistics systems to serve retail customers and professional service providers.

AutoZone serves both do‑it‑yourself (DIY) consumers and commercial customers such as independent repair shops and service centers.

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