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Advance Auto Parts Secures New $1 Billion Credit Facility

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Advance Auto Parts Secures New $1 Billion Credit Facility

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The latest announcement is out from Advance Auto Parts ( (AAP) ).

On August 12, 2025, Advance Auto Parts, Inc. entered into a new five-year senior secured first lien asset-based revolving credit facility with Bank of America, N.A., providing up to $1.0 billion in credit. This move is part of their strategic financial management, replacing a prior facility and supporting their operational liquidity. The company reported its second quarter 2025 results, highlighting a return to profitability with net sales of $2.0 billion and a slight increase in comparable store sales. Despite a decrease in net sales compared to the previous year, the company achieved margin expansion due to cost savings from footprint optimization. Advance Auto Parts reaffirmed its full-year sales, operating margin, and free cash flow guidance, indicating confidence in its strategic direction and commitment to shareholder value.

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 is currently facing significant financial hurdles, with operational inefficiencies and cash flow constraints weighing heavily on its overall performance. While there are signs of strategic growth and some technical recovery, the ongoing financial and valuation challenges significantly impact the stock’s attractiveness.

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 of July 12, 2025, the company operated 4,292 stores primarily in the United States, with additional locations in Canada, Puerto Rico, and the U.S. Virgin Islands, and also served 842 independently owned Carquest branded stores across these locations, Mexico, and various Caribbean islands.

Average Trading Volume: 3,289,942

Technical Sentiment Signal: Hold

Current Market Cap: $3.54B

For detailed information about AAP stock, go to TipRanks’ Stock Analysis page.

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