In a report released yesterday, Robert Ohmes from Bank of America Securities reiterated a Buy rating on AutoZone, with a price target of $4,800.00.
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Robert Ohmes has given his Buy rating due to a combination of factors including AutoZone’s solid earnings delivery and resilient demand trends. The company exceeded earnings expectations, driven by strong professional (Pro) sales growth and healthy average ticket increases, and management sees weather normalization and tax refunds as potential catalysts for further upside through the remainder of the fiscal year.
At the same time, Ohmes views current margin headwinds as manageable and largely temporary, with non-cash LIFO charges and mix shift to Pro offset by improving merchandise margins. He expects ongoing supply chain investments, new store openings, and the buildout of hubs and mega hubs to support continued market share gains in both DIY and Pro, justifying a higher price objective based on AutoZone’s recession-resilient business model and long-term growth runway.
Ohmes covers the Consumer Defensive sector, focusing on stocks such as Dollar General, Costco, and Kroger Company. According to TipRanks, Ohmes has an average return of 8.1% and a 58.42% success rate on recommended stocks.