Analyst Robert Ohmes of Bank of America Securities reiterated a Buy rating on O’Reilly Auto, boosting the price target to $120.00.
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Robert Ohmes has given his Buy rating due to a combination of factors that highlight O’Reilly Auto’s potential for growth and resilience. The company is expected to report strong sales growth in the third quarter, with observed sales accelerating significantly compared to the previous quarter. This growth is supported by O’Reilly’s ability to gain market share, particularly in the DIY and professional segments, and its performance has outpaced competitors like AutoZone and Advance Auto Parts.
Moreover, O’Reilly is poised to benefit from gross margin expansion as vendor acquisition costs improve, despite some potential headwinds from sales mix and tariff pressures. The company’s strategic investments in SG&A to enhance customer service are expected to support long-term sales growth. Additionally, O’Reilly’s efficient supply chain and international expansion opportunities further bolster its growth prospects, making it a resilient player in the non-discretionary auto parts market. These factors contribute to Robert Ohmes’s confidence in maintaining a Buy rating with a price objective of $120.
In another report released yesterday, Mizuho Securities also maintained a Buy rating on the stock with a $112.00 price target.
Based on the recent corporate insider activity of 57 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of ORLY in relation to earlier this year.