Analyst Michael Lasser from UBS maintained a Buy rating on AutoZone and keeping the price target at $4,800.00.
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Michael Lasser has given his Buy rating due to a combination of factors that highlight AutoZone’s strong performance and growth potential. The company reported a 4.8% increase in domestic comparable sales, which aligns with market expectations despite external challenges such as a government shutdown and adverse weather conditions. This growth was bolstered by a significant 14.5% rise in domestic commercial sales, indicating an acceleration from the previous quarter.
Additionally, AutoZone managed its gross margins effectively, benefiting from a lower LIFO charge and sustained merchandise margins. While the company faced higher SG&A expenses due to an accelerated pace of store openings, this is viewed as a strategic move to capitalize on market share opportunities. Although there was a slowdown in international business due to macroeconomic factors in Mexico, the overall outlook remains positive. Lasser believes that the company’s continued market share gains and potential return to double-digit EPS growth present a compelling investment opportunity.
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.