Bank of America Securities analyst Robert Ohmes has reiterated their bullish stance on AZO stock, giving a Buy rating today.
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Robert Ohmes has given his Buy rating due to a combination of factors, including AutoZone’s robust performance in the domestic commercial sector and its strategic growth initiatives. The company reported a solid increase in both DIY and Pro sales, with Pro sales showing significant growth. This momentum is expected to continue, supported by inflation trends that could enhance average ticket prices.
Additionally, AutoZone’s expansion strategy, with plans to open more stores domestically and internationally, is a key factor in Ohmes’s positive outlook. Despite some gross margin pressures from LIFO charges and a growing commercial mix, the company is expected to benefit from merchandise margin improvements. The ongoing investments in growth initiatives and the company’s recession-resilient history further bolster confidence in AutoZone’s ability to gain market share, justifying the Buy rating and the increased price objective.
In another report released today, Roth MKM also reiterated a Buy rating on the stock with a $4,650.00 price target.
Based on the recent corporate insider activity of 70 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AZO in relation to earlier this year.