Analyst Tristan M. Thomas-Martin of BMO Capital maintained a Buy rating on O’Reilly Auto, with a price target of $110.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Tristan M. Thomas-Martin has given his Buy rating due to a combination of factors including O’Reilly Auto’s strong sales performance and strategic expansion efforts. The company’s same-store sales exceeded expectations, driven by both professional and DIY segments, and management has increased guidance for revenue and earnings per share. This positive outlook is supported by effective price management strategies and the potential for further benefits from tariff-induced inflation.
Moreover, O’Reilly Auto is expanding its distribution center network, which is expected to enhance its market presence, particularly in underpenetrated regions. The company has also opened numerous new stores, with plans for continued expansion. These strategic initiatives, combined with the company’s ability to capture market share in a growing and fragmented market, underpin the Buy rating. The aging and increasingly complex domestic car park, along with a less significant EV headwind than previously anticipated, further support the positive outlook for O’Reilly Auto.
According to TipRanks, M. Thomas-Martin is an analyst with an average return of -0.7% and a 52.31% success rate. M. Thomas-Martin covers the Consumer Cyclical sector, focusing on stocks such as Winnebago Industries, Advance Auto Parts, and AutoZone.
In another report released today, J.P. Morgan also reiterated a Buy rating on the stock with a $114.00 price target.