Royal Bank Of Canada Issues Positive Forecast for Advance Auto Parts (NYSE:AAP) Stock Price

Key Points

• Royal Bank of Canada raised its price target on Advance Auto Parts to $65 from $62 while keeping a sector perform rating, implying about 12% upside from the current share price.
• Advance Auto Parts reported a strong quarter, with EPS of $0.77 beating the $0.39 consensus and revenue of $2.61 billion topping estimates. Comparable sales and margins also improved, signaling a rebound in performance.
• Despite the upbeat results, analyst sentiment remains cautious overall: the stock’s consensus rating is still “Reduce” with an average price target of $56.04, and the company only reaffirmed full-year guidance rather than raising it.

Advance Auto Parts (NYSE:AAP - Get Free Report) had its price target hoisted by equities researchers at Royal Bank Of Canada from $62.00 to $65.00 in a research note issued to investors on Friday,MarketScreener reports. The brokerage presently has a "sector perform" rating on the stock. Royal Bank Of Canada's price target suggests a potential upside of 12.13% from the stock's current price.

A number of other research firms have also weighed in on AAP. JPMorgan Chase & Co. cut 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. Citigroup raised their price objective on Advance Auto Parts from $55.00 to $57.00 and gave the company a "neutral" rating in a research report on Tuesday, May 12th. Deutsche Bank Aktiengesellschaft raised shares of Advance Auto Parts to a "buy" rating in a research note on Friday. DA Davidson set a $58.00 price target on Advance Auto Parts in a research note on Tuesday, February 17th. Finally, Weiss Ratings reissued a "sell (d+)" rating on shares of Advance Auto Parts in a research note on Friday, May 15th. Two equities research analysts have rated the stock with a Buy rating, seventeen have issued a Hold rating and four have assigned a Sell rating to the company's stock. According to data from MarketBeat, Advance Auto Parts currently has an average rating of "Reduce" and an average price target of $56.04.

Advance Auto Parts Trading Down 1.1%

Shares of NYSE AAP opened at $57.97 on Friday. The firm's 50 day moving average price is $53.84 and its 200-day moving average price is $50.37. The company has a debt-to-equity ratio of 1.55, a quick ratio of 0.87 and a current ratio of 1.75. The company has a market cap of $3.50 billion, a PE ratio of 79.70, a P/E/G ratio of 0.90 and a beta of 1.06. Advance Auto Parts has a 52-week low of $37.89 and a 52-week high of $70.00.

Advance Auto Parts (NYSE:AAP - Get Free Report) last issued its earnings results on Thursday, May 21st. The company reported $0.77 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.39 by $0.38. The company had revenue of $2.61 billion for the quarter, compared to analysts' expectations of $2.57 billion. Advance Auto Parts had a net margin of 0.51% and a return on equity of 6.23%. The firm's quarterly revenue was up 1.2% on a year-over-year basis. During the same quarter last year, the company posted $0.40 earnings per share. Advance Auto Parts has set its FY 2026 guidance at 2.400-3.100 EPS. On average, equities research analysts expect that Advance Auto Parts will post 2.77 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in AAP. Royal Bank of Canada raised its stake 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 worth $3,119,000 after buying an additional 41,157 shares in the last quarter. Goldman Sachs Group Inc. lifted its position in shares of Advance Auto Parts by 327.7% in the first quarter. Goldman Sachs Group Inc. now owns 362,918 shares of the company's stock valued at $14,230,000 after acquiring an additional 278,066 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its stake in shares of 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 valued at $7,096,000 after acquiring an additional 23,018 shares during the last quarter. Hsbc Holdings PLC increased its position in Advance Auto Parts by 3.1% during the 2nd quarter. Hsbc Holdings PLC now owns 6,306 shares of the company's stock worth $293,000 after purchasing an additional 191 shares in the last quarter. Finally, Baird Financial Group Inc. raised its stake in Advance Auto Parts by 2.7% in the 2nd quarter. Baird Financial Group Inc. now owns 56,782 shares of the company's stock valued at $2,640,000 after purchasing an additional 1,515 shares during the last quarter. 88.70% of the stock is owned by hedge funds and other institutional investors.

Key Stories Impacting 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.

Advance Auto Parts Company Profile

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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