Advance Auto Parts price target raised to $60 from $49 at Citi

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.