BMO Capital Markets Issues Pessimistic Forecast for AutoZone (NYSE:AZO) Stock Price

Key Points

• BMO Capital Markets cut its price target on AutoZone from $4,300 to $4,000, though it kept an outperform rating. The new target still implies roughly 29% upside from the current share price.
• AutoZone shares were down about 9% and opened at $3,100.16, near the low end of their 52-week range. The stock had previously traded as high as $4,388.11 over the past year.
• The company recently reported EPS of $38.07, beating estimates, while revenue rose 8.4% year over year to $4.84 billion. Despite the earnings beat, revenue came in slightly below expectations and analysts remain divided, with a consensus Moderate Buy rating.

AutoZone (NYSE:AZO - Get Free Report) had its price objective reduced by BMO Capital Markets from $4,300.00 to $4,000.00 in a research note issued on Wednesday,Benzinga reports. The brokerage currently has an "outperform" rating on the stock. BMO Capital Markets' target price would suggest a potential upside of 29.03% from the company's current price.

Several other equities research analysts also recently commented on the company. Citigroup increased their price objective on AutoZone from $4,200.00 to $4,300.00 and gave the company a "buy" rating in a report on Wednesday, March 4th. Mizuho increased their price objective on AutoZone from $3,550.00 to $3,600.00 and gave the company a "neutral" rating in a report on Thursday, March 5th. The Goldman Sachs Group raised their price target on AutoZone from $4,274.00 to $4,345.00 and gave the company a "buy" rating in a report on Wednesday, March 4th. Barclays raised their price target on AutoZone from $3,800.00 to $3,900.00 and gave the company an "overweight" rating in a report on Wednesday, March 4th. Finally, Roth Mkm cut their price target on AutoZone from $4,650.00 to $4,526.00 and set a "buy" rating for the company in a report on Wednesday, March 4th. One investment analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $4,264.83.

AutoZone Trading Down 9.0%

NYSE AZO opened at $3,100.16 on Wednesday. The company has a market cap of $51.08 billion, a PE ratio of 21.72, a PEG ratio of 1.74 and a beta of 0.43. AutoZone has a 12 month low of $3,001.00 and a 12 month high of $4,388.11. The stock has a 50 day moving average of $3,448.20 and a 200-day moving average of $3,579.65.

AutoZone (NYSE:AZO - Get Free Report) last released its quarterly earnings data on Tuesday, May 26th. The company reported $38.07 EPS for the quarter, beating the consensus estimate of $36.22 by $1.85. The company had revenue of $4.84 billion during 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 revenue for the quarter was up 8.4% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $35.36 EPS. As a group, sell-side analysts predict that AutoZone will post 149.16 EPS for the current fiscal year.

Insiders Place Their Bets

In other AutoZone news, Director Earl G. Graves, Jr. sold 50 shares of the 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 transaction, the director owned 4,837 shares in the company, valued at $16,826,568.64. This trade represents a 1.02% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. 2.60% of the stock is owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the stock. Raleigh Capital Management Inc. bought a new position in shares of AutoZone in the third quarter worth $26,000. Turning Point Benefit Group Inc. bought a new position in shares of AutoZone in the third quarter worth $25,000. Torren Management LLC bought a new position in shares of AutoZone in the fourth quarter worth $27,000. Transamerica Financial Advisors LLC increased its position in shares of AutoZone by 100.0% in the fourth quarter. Transamerica Financial Advisors LLC now owns 8 shares of the company's stock worth $28,000 after purchasing an additional 4 shares during the period. Finally, MCF Advisors LLC increased its position in shares of AutoZone by 50.0% in the fourth quarter. MCF Advisors LLC now owns 9 shares of the company's stock worth $31,000 after purchasing an additional 3 shares during the period. Institutional investors own 92.74% of the company's stock.

Key Headlines Impacting AutoZone

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

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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