TD Cowen analyst Max Rakhlenko has maintained their bullish stance on AZO stock, giving a Buy rating yesterday.
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Max Rakhlenko’s rating is based on AutoZone’s strong performance in the Do-It-For-Me (DIFM) segment, which is expected to continue growing as the company expands its mega hub openings. This growth, coupled with the company’s ability to capture market share and benefit from competitive dynamics, positions AutoZone favorably in the market. Additionally, the anticipated increase in same-SKU inflation and ticket growth supports a positive outlook for the company’s financial performance.
Despite some pressure on EBIT margins due to LIFO and investments, these factors are seen as transitory and necessary for long-term growth. The company’s strategic investments in store growth and market share expansion are expected to yield returns, making the current margin pressures more understandable. Overall, the combination of these factors contributes to a positive assessment of AutoZone’s potential for future success, justifying the Buy rating.
In another report released yesterday, D.A. Davidson also reiterated a Buy rating on the stock with a $4,850.00 price target.
Based on the recent corporate insider activity of 70 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 AZO in relation to earlier this year.