In a report released today, Christopher Horvers from J.P. Morgan maintained a Buy rating on AutoZone, with a price target of $4,850.00.
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Christopher Horvers has given his Buy rating due to a combination of factors that highlight AutoZone’s strong performance and growth potential. The company has shown resilience with its domestic comparable sales forecast being adjusted upwards, reflecting robust trends despite external challenges such as weather and tariff inflation. AutoZone’s ability to gain market share, particularly in the Do-It-For-Me (DIFM) segment, further underscores its competitive edge.
Moreover, while there are pressures on gross margins due to LIFO and tariffs, these are expected to be temporary and non-cash in nature. The company’s strategic investments in operations and its focus on expanding its unit growth are poised to drive long-term profitability. Additionally, AutoZone’s valuation appears attractive, with potential for multiple expansion as it continues to capitalize on industry dynamics and its leadership position in the market. These elements collectively support the Buy rating, with a price target set at $4,850 by December 2026.
Horvers covers the Consumer Cyclical sector, focusing on stocks such as Ulta Beauty, Best Buy Co, and Home Depot. According to TipRanks, Horvers has an average return of 10.2% and a 65.69% success rate on recommended stocks.
In another report released on September 11, Barclays also maintained a Buy rating on the stock with a $4,510.00 price target.