Advance Auto Parts price target raised to $39 from $33 at BofA

BofA analyst Robert Ohmes raised the firm’s price target on Advance Auto Parts (AAP) to $39 from $33 and keeps an Underperform rating on the shares. The firm sees initial turnaround progress from strategic initiatives and raised its 2025 EPS view to $2.00 from $1.70 as it expects sequential improvement in comps and margin. However, BofA reiterates its Underperform rating to reflect uncertainty about the timing of returns on strategic investment spending and the view that consumer uncertainty could also pressure Advance’s sales and margin rate in 2025 and beyond.