Scot Ciccarelli, an analyst from Truist Financial, maintained the Hold rating on Advance Auto Parts (AAP – Research Report). The associated price target is $34.00.
Scot Ciccarelli has given his Hold rating due to a combination of factors impacting Advance Auto Parts. The company’s fourth-quarter performance was roughly in line with expectations, but the first quarter is already showing signs of weakness due to adverse weather conditions and profit pressures from store closures. While the company is making strides in enhancing its inventory and supply chain, the competitive landscape remains challenging as rivals continue to invest heavily.
Moreover, the company has been historically poorly managed, which raises concerns about its ability to meet its 2027 targets. Although there is potential for improvement in sales as the company implements strategic initiatives, significant growth is necessary to achieve its goals. The ongoing store closures, while a step towards long-term improvement, are expected to create a profit headwind in the short term. Consequently, Ciccarelli has adjusted the price target to $34 from $39, reflecting a cautious outlook.
In another report released today, Roth MKM also maintained a Hold rating on the stock with a $40.00 price target.
Based on the recent corporate insider activity of 84 insiders, corporate insider sentiment is neutral on the stock.