AutoZone, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Simeon Gutman from Morgan Stanley reiterated a Buy rating on the stock and has a $4,700.00 price target.
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Simeon Gutman has given his Buy rating due to a combination of factors that suggest AutoZone is well-positioned for future growth. Despite facing challenges such as tariff pressures and ongoing investments in SG&A, AutoZone has demonstrated strong execution and consistent market share gains. The company’s initiatives, such as improving customer service and expanding mega hubs, are expected to continue driving top-line momentum and support its competitive position.
AutoZone’s valuation, currently at a premium compared to the S&P 500, still offers room for upside as the company benefits from industry tailwinds and its strategic growth initiatives. While near-term headwinds like LIFO charges due to tariffs are anticipated, these are expected to normalize over time. Additionally, AutoZone’s ability to sustain domestic comparable sales growth and its supportive environment for aftermarket demand further reinforce the positive outlook, justifying the Buy rating.
In another report released today, TD Cowen also assigned a Buy rating to the stock with a $4,900.00 price target.