In a report released today, Simeon Gutman from Morgan Stanley maintained a Buy rating on AutoZone (AZO – Research Report), with a price target of $3,750.00.
Simeon Gutman has given his Buy rating due to a combination of factors that highlight AutoZone’s strategic positioning and growth potential. The company has demonstrated resilience in a challenging consumer spending environment by focusing on expanding its market share. This is evidenced by the positive momentum in both the domestic Do-It-For-Me (DIFM) and Do-It-Yourself (DIY) segments, driven by initiatives such as improving parts availability and expanding mega hubs.
Furthermore, despite a valuation premium, AutoZone’s strong long-term fundamentals and ability to gain market share justify the current price-to-earnings ratio. Gutman also notes that while there are concerns such as increased SG&A spending and tariff risks, AutoZone has historically managed these challenges effectively. The company’s strategic initiatives and improved execution are expected to lead to modest growth in comparable sales in the medium term, supporting the positive outlook.
According to TipRanks, Gutman is a 4-star analyst with an average return of 2.9% and a 59.51% success rate. Gutman covers the Consumer Cyclical sector, focusing on stocks such as Tractor Supply, Advance Auto Parts, and Best Buy Co.
In another report released today, J.P. Morgan also maintained a Buy rating on the stock with a $3,830.00 price target.