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Advance Auto Parts Announces Credit Agreement Amendment

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Advance Auto Parts Announces Credit Agreement Amendment

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An update from Advance Auto Parts ( (AAP) ) is now available.

On July 24, 2025, Advance Auto Parts, Inc. announced Amendment No. 7 to its Credit Agreement, facilitating the issuance of senior notes due in 2030 and 2033. This move is part of the company’s strategic initiatives to optimize assets and improve profitability, following the sale of its Worldpac business in November 2024 for $1.47 billion. The restructuring plan aims to streamline operations, which includes store closures and workforce realignment, reflecting a strategic shift towards the Advance blended-box model.

The most recent analyst rating on (AAP) stock is a Buy with a $55.00 price target. To see the full list of analyst forecasts on Advance Auto Parts stock, see the AAP Stock Forecast page.

Spark’s Take on AAP Stock

According to Spark, TipRanks’ AI Analyst, AAP is a Neutral.

Advance Auto Parts’ overall stock score is driven by significant financial challenges, including declining revenues, high leverage, and negative cash flow. Despite these risks, technical analysis reveals strong bullish momentum, and strategic initiatives highlighted in the earnings call offer some optimism for future growth. However, the negative valuation metrics and current financial constraints weigh heavily on the score.

To see Spark’s full report on AAP stock, click here.

More about Advance Auto Parts

Advance Auto Parts, Inc. is a leading automotive aftermarket parts provider in North America, serving both professional installers and do-it-yourself customers, as well as independently-owned operators. The company offers a broad selection of brand names, OEM, and owned brand automotive replacement parts, accessories, batteries, and maintenance items for various vehicles. As of April 2025, it operated 4,285 stores primarily in the United States, with additional locations in Canada, Puerto Rico, and the U.S. Virgin Islands, and served 881 independently owned Carquest branded stores.

Average Trading Volume: 3,192,233

Technical Sentiment Signal: Hold

Current Market Cap: $3.99B

For a thorough assessment of AAP stock, go to TipRanks’ Stock Analysis page.

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