TD Cowen analyst Max Rakhlenko has maintained their neutral stance on AAP stock, giving a Hold rating today.
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Max Rakhlenko has given his Hold rating due to a combination of factors tied to both revenue and profitability trajectories. While management is clearly making headway on cost control and expects a meaningful EBIT margin lift in FY26, the delay of its medium-term 7% EBIT margin goal and reduced magnitude of expected improvement signal execution risk and a slower payoff from key strategic initiatives.
At the same time, the top line remains under pressure, with softer-than-anticipated FY26 comparable sales guidance and signs of unit weakness, especially relative to peers. With DIY trends still challenged, delivery speed gaps in DIFM, and a need for stronger comp momentum in the outer years to support longer-term margin goals, he prefers to wait for clearer evidence of sustainable sales and margin expansion before turning more constructive on AAP shares.
Rakhlenko covers the Consumer Cyclical sector, focusing on stocks such as Planet Fitness, Valvoline, and Home Depot. According to TipRanks, Rakhlenko has an average return of 9.4% and a 61.35% success rate on recommended stocks.