Citi analyst Steven Zaccone raised the firm’s price target on Advance Auto Parts (AAP) to $60 from $49 and keeps a Neutral rating on the shares after the company announced its intention to issue $1.5B of new debt and pre-announced Q2 results concurrent with the refinancing announcement. Given that the proposed offering will improve Advance’s liquidity position, the firm says the move “seems like a wise decision,” but adds that the cost of capital is high and the deal will likely be dilutive to EPS.
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Read More on AAP:
- Advance Auto Parts price target raised to $65 from $47 at DA Davidson
- Advance Auto Parts price target raised to $56 from $52 at Evercore ISI
- Cautious Outlook: Hold Rating on Advance Auto Parts Amid Mixed Performance Indicators
- Advance Auto Parts Announces Credit Agreement Amendment
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