TD Cowen analyst Max Rakhlenko maintained a Buy rating on AutoZone today and set a price target of $4,900.00.
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Max Rakhlenko has given his Buy rating due to a combination of factors that highlight AutoZone’s strong market position and growth potential. Despite a mixed earnings per share (EPS) outlook for the first quarter, the underlying business momentum remains robust, particularly in the Do-It-For-Me (DIFM) segment. The company is expected to benefit from increased transaction market share and inflationary trends, which are anticipated to drive significant growth in DIFM sales.
Additionally, while the Do-It-Yourself (DIY) segment has faced some volatility, it is expected to stabilize, contributing to a positive outlook. AutoZone’s valuation, although high compared to historical levels, is in line with its peers and offers a discount relative to the S&P 500. This valuation, combined with the company’s strategic initiatives and market dynamics, supports the Buy rating as investor concerns are likely to be alleviated over time.
According to TipRanks, Rakhlenko is a 4-star analyst with an average return of 6.4% and a 56.48% success rate. Rakhlenko covers the Consumer Cyclical sector, focusing on stocks such as AutoZone, Planet Fitness, and O’Reilly Auto.
In another report released today, Barclays also maintained a Buy rating on the stock with a $4,510.00 price target.