AutoZone's (AZO) Buy Rating Reiterated at DA Davidson

Key Points

• DA Davidson reiterated its buy rating on AutoZone and kept a $4,300 price target, implying about 38.7% upside from the previous close.
• Other analysts remain broadly positive on the stock, with several firms maintaining buy or outperform ratings. AutoZone now has a Moderate Buy consensus and an average price target of $4,247.43.
• AutoZone’s latest quarter was solid, with EPS of $38.07 beating estimates and revenue up 8.4% year over year to $4.84 billion. The company also reported stronger same-store sales and continued strength in its domestic and commercial business.

AutoZone (NYSE:AZO - Get Free Report)'s stock had its "buy" rating reaffirmed by research analysts at DA Davidson in a research report issued to clients and investors on Wednesday,Benzinga reports. They presently have a $4,300.00 target price on the stock. DA Davidson's target price would indicate a potential upside of 38.70% from the stock's previous close.

Several other research firms have also issued reports on AZO. Raymond James Financial reissued a "strong-buy" rating on shares of AutoZone in a research report on Wednesday. TD Cowen decreased their target price on AutoZone from $4,400.00 to $4,250.00 and set a "buy" rating for the company in a research report on Monday, March 16th. Oppenheimer reaffirmed an "outperform" rating and issued a $4,300.00 price target (up from $4,150.00) on shares of AutoZone in a research note on Tuesday, March 10th. Morgan Stanley increased their price target on shares of AutoZone from $4,000.00 to $4,020.00 and gave the company an "overweight" rating in a research report on Wednesday, March 4th. Finally, The Goldman Sachs Group boosted their price objective on shares of AutoZone from $4,274.00 to $4,345.00 and gave the company a "buy" rating in a report on Wednesday, March 4th. One research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and six have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, AutoZone currently has an average rating of "Moderate Buy" and a consensus price target of $4,247.43.

AutoZone Stock Performance

NYSE:AZO opened at $3,100.16 on Wednesday. The firm's 50-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 price-to-earnings ratio of 21.72, a PEG ratio of 1.74 and a beta of 0.43. AutoZone has a 52-week low of $3,001.00 and a 52-week high of $4,388.11.

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

Insider Activity at AutoZone

In other news, Director Earl G. Graves, Jr. sold 50 shares of the stock in a transaction dated Friday, April 10th. The shares were sold at an average price of $3,478.72, for a total value of $173,936.00. Following the transaction, the director directly owned 4,837 shares of the company's stock, valued at $16,826,568.64. This represents a 1.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 2.60% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently made changes to their positions in AZO. Vanguard Group Inc. lifted its position in AutoZone by 1.5% during the third quarter. Vanguard Group Inc. now owns 1,797,548 shares of the company's stock worth $7,711,912,000 after purchasing an additional 26,544 shares during the period. Morgan Stanley grew its position in AutoZone by 17.8% during the 4th quarter. Morgan Stanley now owns 492,794 shares of the company's stock worth $1,671,323,000 after acquiring an additional 74,555 shares during the last quarter. Price T Rowe Associates Inc. MD raised its position in AutoZone by 1.9% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 387,042 shares of the company's stock valued at $1,312,654,000 after purchasing an additional 7,390 shares during the last quarter. Norges Bank acquired a new stake in shares of AutoZone during the fourth quarter valued at about $939,205,000. Finally, PineStone Asset Management Inc. raised its position in AutoZone by 1.5% during the 4th quarter. PineStone Asset Management Inc. now owns 269,173 shares of the company's stock worth $912,900,000 after purchasing an additional 3,868 shares during the last quarter. Institutional investors and hedge funds own 92.74% of the company's stock.

More AutoZone News

Here are the key news stories impacting AutoZone this week:

• Positive Sentiment: AutoZone reported fiscal Q3 EPS of $38.07, ahead of consensus estimates, and revenue rose 8.4% year over year to $4.84 billion, with same-store sales up 3.9% companywide and 4.1% domestically. Article Title
• Positive Sentiment: Domestic growth and commercial expansion remained strong, and management said the repair business stayed resilient even as consumers cut back elsewhere. Article Title
• Neutral Sentiment: AutoZone announced a partnership with Google Cloud, which could support longer-term operational and digital initiatives, but it was not the main driver of the stock move. Article Title
• Neutral Sentiment: Several analysts cut price targets after the report, including BMO Capital Markets to $4,000 and Robert W. Baird to $3,600, signaling some caution but still implying upside from recent levels. Article Title
• Negative Sentiment: The stock fell sharply after the company missed revenue expectations, and multiple reports pointed to margin pressure, including a non-cash LIFO impact, as well as softer international results. Article Title

About AutoZone

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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