UBS Group Issues Positive Forecast for Advance Auto Parts (NYSE:AAP) Stock Price

Key Points

• UBS Group raised its price target on Advance Auto Parts to $65 from $60, while keeping a neutral rating. The new target suggests about 12% upside from the stock’s current price.
• Advance Auto Parts delivered a strong quarter, reporting EPS of $0.77 versus the $0.39 consensus and revenue of $2.61 billion versus expectations of $2.57 billion. Revenue also rose 1.2% year over year.
• Analysts remain cautious overall despite recent strength, with the consensus rating at “Reduce” and an average price target of $56.04. The stock has gained attention from institutional investors, with 88.7% of shares owned by institutions and hedge funds.

Advance Auto Parts (NYSE:AAP - Get Free Report) had its target price upped by UBS Group from $60.00 to $65.00 in a research report issued to clients and investors on Friday,MarketScreener reports. The firm presently has a "neutral" rating on the stock. UBS Group's target price would indicate a potential upside of 12.13% from the company's current price.

Several other research analysts have also recently commented on AAP. JPMorgan Chase & Co. lowered their target price on Advance Auto Parts from $64.00 to $59.00 and set a "neutral" rating for the company in a research note on Friday, May 15th. TD Cowen reissued a "hold" rating on shares of Advance Auto Parts in a research note on Tuesday, February 17th. Weiss Ratings reaffirmed a "sell (d+)" rating on shares of Advance Auto Parts in a research report on Friday, May 15th. Morgan Stanley set a $60.00 price objective on Advance Auto Parts in a report on Tuesday, February 17th. Finally, The Goldman Sachs Group restated a "sell" rating and issued a $54.00 price target (up from $49.00) on shares of Advance Auto Parts in a research note on Friday. Two analysts have rated the stock with a Buy rating, seventeen have given a Hold rating and four have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Reduce" and an average price target of $56.04.

Advance Auto Parts Price Performance

Shares of AAP stock opened at $57.97 on Friday. Advance Auto Parts has a one year low of $37.89 and a one year high of $70.00. The company has a market capitalization of $3.50 billion, a P/E ratio of 79.70, a P/E/G ratio of 0.90 and a beta of 1.06. The company's 50-day simple moving average is $53.84 and its two-hundred day simple moving average is $50.37. The company has a debt-to-equity ratio of 1.55, a current ratio of 1.75 and a quick ratio of 0.87.

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

Institutional Trading of Advance Auto Parts

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. Price T Rowe Associates Inc. MD boosted its position in Advance Auto Parts by 18.9% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 7,474,546 shares of the company's stock valued at $293,751,000 after purchasing an additional 1,190,094 shares during the last quarter. Pzena Investment Management LLC increased its holdings in Advance Auto Parts by 8.2% during the first quarter. Pzena Investment Management LLC now owns 4,301,089 shares of the company's stock worth $226,882,000 after buying an additional 327,596 shares during the last quarter. Federated Hermes Inc. raised its position in Advance Auto Parts by 4.4% during the fourth quarter. Federated Hermes Inc. now owns 2,811,675 shares of the company's stock worth $110,499,000 after acquiring an additional 117,648 shares in the last quarter. State Street Corp lifted its stake in Advance Auto Parts by 3.9% in the fourth quarter. State Street Corp now owns 2,499,981 shares of the company's stock valued at $98,249,000 after acquiring an additional 92,861 shares during the last quarter. Finally, Dimensional Fund Advisors LP increased its stake in shares of Advance Auto Parts by 15.3% during the 1st quarter. Dimensional Fund Advisors LP now owns 2,127,948 shares of the company's stock worth $112,243,000 after purchasing an additional 282,591 shares during the last quarter. 88.70% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines 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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