The Goldman Sachs Group Issues Pessimistic Forecast for Advance Auto Parts (NYSE:AAP) Stock Price

Key Points

• Goldman Sachs cut Advance Auto Parts’ price target from $54 to $40 and maintained a “sell” rating, implying 6.21% downside from the stock’s recent $42.65 price. The broader analyst consensus remains “hold,” with an average target of $51.50.
• Advance Auto Parts beat second-quarter earnings expectations, reporting adjusted EPS of $1.03 versus $0.81 expected, helped by improved margins and a $26 million tariff refund. The company raised its FY2026 adjusted EPS guidance to $2.60–$3.30.
• Revenue and comparable-store sales fell short of expectations amid weak DIY demand and constrained consumer spending, fueling concerns about execution and the sustainability of the turnaround despite improved profitability.

Advance Auto Parts (NYSE:AAP - Get Free Report) had its price objective dropped by investment analysts at The Goldman Sachs Group from $54.00 to $40.00 in a report issued on Friday,Benzinga reports. The firm currently has a "sell" rating on the stock. The Goldman Sachs Group's price objective would indicate a potential downside of 6.21% from the stock's current price.

Other equities research analysts also recently issued reports about the company. UBS Group cut their price target on Advance Auto Parts from $65.00 to $47.00 and set a "neutral" rating on the stock in a research report on Friday. Deutsche Bank Aktiengesellschaft upgraded Advance Auto Parts to a "buy" rating in a research note on Friday, May 22nd. Truist Financial set a $43.00 price target on Advance Auto Parts and gave the company a "hold" rating in a research report on Thursday. Evercore set a $65.00 price target on Advance Auto Parts in a report on Tuesday, August 4th. Finally, JPMorgan Chase & Co. lowered their price objective on Advance Auto Parts from $65.00 to $55.00 and set a "neutral" rating on the stock in a research report on Friday. Two equities research analysts have rated the stock with a Buy rating, nineteen have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of "Hold" and a consensus price target of $51.50.

Advance Auto Parts Trading Up 0.6%

NYSE:AAP traded up $0.26 during midday trading on Friday, hitting $42.65. The stock had a trading volume of 2,509,397 shares, compared to its average volume of 1,902,599. The stock has a 50-day moving average of $56.94 and a 200 day moving average of $55.43. The company has a market capitalization of $2.58 billion, a price-to-earnings ratio of 59.24, a PEG ratio of 0.93 and a beta of 1.03. Advance Auto Parts has a one year low of $37.89 and a one year high of $65.21. The company has a quick ratio of 0.85, a current ratio of 1.78 and a debt-to-equity ratio of 1.54.

Advance Auto Parts (NYSE:AAP - Get Free Report) last posted its earnings results on Thursday, August 20th. The company reported $1.03 earnings per share for the quarter, topping analysts' consensus estimates of $0.81 by $0.22. The company had revenue of $2 billion during the quarter, compared to analyst estimates of $2.04 billion. Advance Auto Parts had a return on equity of 8.95% and a net margin of 0.51%.Advance Auto Parts's revenue was down .5% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.69 earnings per share. Advance Auto Parts has set its FY 2026 guidance at 2.600-3.300 EPS. As a group, sell-side analysts forecast that Advance Auto Parts will post 2.94 EPS for the current year.

Institutional Trading of Advance Auto Parts

Large investors have recently added to or reduced their stakes in the stock. Allworth Financial LP acquired a new position in Advance Auto Parts in the second quarter valued at approximately $25,000. Caitong International Asset Management Co. Ltd purchased a new position in Advance Auto Parts during the 3rd quarter valued at about $31,000. State of Wyoming acquired a new position in Advance Auto Parts in the 2nd quarter valued at about $34,000. AlphaCore Capital LLC increased its stake in Advance Auto Parts by 53.6% during the fourth quarter. AlphaCore Capital LLC now owns 883 shares of the company's stock worth $35,000 after purchasing an additional 308 shares during the period. Finally, Hantz Financial Services Inc. grew its stake in shares of Advance Auto Parts by 184.5% in the fourth quarter. Hantz Financial Services Inc. now owns 919 shares of the company's stock worth $36,000 after acquiring an additional 596 shares in the last quarter. 88.70% of the stock is currently owned by hedge funds and other institutional investors.

Advance Auto Parts News Summary

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

• Positive Sentiment: Second-quarter adjusted EPS was $1.03, well above the $0.81 consensus estimate and up from $0.69 a year earlier. Gross margin improved to 46.2% from 43.5%, operating income increased substantially, and net leverage fell to 2.1x from 2.4x in the prior quarter. Advance Auto Parts Reports Second Quarter 2026 Results
• Positive Sentiment: A $26 million tariff refund provided an additional boost to second-quarter margins, while the company expanded its product catalog by thousands of stock-keeping units. Advance also raised its FY2026 adjusted EPS guidance to $2.60–$3.30 and continues to pay a quarterly dividend of $0.25 per share. Tariff Refund and Product Catalog Expansion
• Neutral Sentiment: Analysts remain divided on the turnaround. JPMorgan, Morgan Stanley, RBC and DA Davidson all reduced their price targets to $48–$55 but retained neutral, equal-weight or sector-perform ratings. These targets still imply upside from current levels, but the cuts signal reduced confidence in near-term execution. Analysts Cut Forecasts After Q2 Results
• Negative Sentiment: Revenue was approximately $2.0 billion, below the roughly $2.04 billion consensus, while comparable-store sales fell 0.5% year over year. Weak DIY demand and constrained consumer spending—potentially worsened by high gasoline prices—raised concerns about volatile demand and the sustainability of sales growth. Q2 Weak DIY Demand
• Negative Sentiment: Bank of America analyst Robert Ohmes reiterated a Sell rating with a $48 price target, citing DIY weakness and execution risks. The cluster of target reductions has reinforced the bearish reaction to the revenue miss, even though profitability and cash flow improved. Bank of America Sell Rating

About Advance Auto Parts

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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