O’Reilly Auto, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Bobby Griffin from Raymond James upgraded the rating on the stock to a Buy and gave it a $105.00 price target.
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Bobby Griffin has given his Buy rating due to a combination of factors that highlight O’Reilly Auto’s promising growth trajectory and financial stability. The recent pullback in stock price presents an attractive entry point, especially after a strong third-quarter performance. The company benefits from a visible near-term pricing tailwind, which is expected to support comparable sales growth through the remainder of 2025 and into early 2026. Additionally, the Do-It-For-Me (DIFM) segment is performing robustly, with significant growth driven by increased ticket counts.
Moreover, O’Reilly Auto’s strategic initiatives, such as expanding its store network and improving parts availability, further bolster its growth potential. The company’s strong balance sheet and cash flow generation provide flexibility for shareholder-friendly capital allocation, including share repurchases. Despite some investor concerns about tariff-related pricing and DIY elasticity, the essential nature of the industry and O’Reilly’s market position support confidence in its long-term prospects. Overall, these factors justify the premium multiple and favorable risk/reward profile at current levels.
In another report released on October 26, TD Cowen also maintained a Buy rating on the stock with a $125.00 price target.