TD Cowen analyst Max Rakhlenko maintained a Buy rating on O’Reilly Auto today and set a price target of $125.00.
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Max Rakhlenko has given his Buy rating due to a combination of factors that highlight O’Reilly Auto’s strong positioning and potential for growth. The company benefits from a generally healthy consumer base and resilient industry fundamentals, such as increasing miles driven and an aging car parc, which support ongoing demand for auto parts. Despite some caution regarding discretionary spending and potential tariff impacts, O’Reilly Auto’s management remains optimistic about the company’s ability to maintain its market position.
Additionally, O’Reilly Auto’s differentiated supply chain network enhances its parts coverage and delivery capabilities, positioning the company well to capture market share in a dynamic environment. The company’s strategic partnerships with suppliers have mitigated some tariff burdens, and its pricing power remains strong, with inflationary pressures being managed effectively. These factors, combined with opportunities for long-term growth in markets like Mexico and Canada, underpin Rakhlenko’s Buy rating on the stock.
Rakhlenko covers the Consumer Cyclical sector, focusing on stocks such as Planet Fitness, Home Depot, and O’Reilly Auto. According to TipRanks, Rakhlenko has an average return of 13.0% and a 70.86% success rate on recommended stocks.