AutoZone price target lowered to $4,076 from $4,499 at Truist

Truist analyst Scot Ciccarelli lowered the firm’s price target on AutoZone (AZO) to $4,076 from $4,499 but keeps a Buy rating on the shares. The company’s Q1 results were below consensus as not all estimates reflected LIFO charges and higher SG&A run rates, the analyst tells investors in a research note. Margins will continue to be pressured in the near term due to non-cash LIFO charges and higher SG&A costs associated with accelerating unit growth, but the ROIC on the faster growth rate should ultimately be extremely strong, the firm added.