Michael Lasser, an analyst from UBS, maintained the Hold rating on Advance Auto Parts. The associated price target remains the same with $65.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Michael Lasser has given his Hold rating due to a combination of factors affecting Advance Auto Parts. While the company’s third-quarter results showed notable progress, with a comp growth of 3.0% exceeding expectations, there are still concerns about the sustainability of these trends. The moderation in both the DIY and DIFM segments, possibly due to consumer headwinds and tougher comparisons from the previous year, raises questions about future performance.
Additionally, there is uncertainty regarding the continuation of the inflationary benefits that have supported recent growth. Although Advance Auto Parts has raised its adjusted EPS outlook, indicating confidence in its long-term strategy, the company is still in the early stages of its plan. The potential for volatility in the coming quarters and the need for a consistent track record of progress contribute to the Hold rating, as any setbacks could lead to significant negative reactions in the market.
In another report released today, TD Cowen also maintained a Hold rating on the stock with a $62.00 price target.