AutoZone price target lowered to $4,200 from $4,350 at JPMorgan

JPMorgan lowered the firm’s price target on AutoZone (AZO) to $4,200 from $4,350 and keeps an Overweight rating on the shares. The company reported a domestic comp beat but its margin pressures were worse than expected, netting to earnings that essentially came in-line with JPMorgan’s below-the-Street forecast, the analyst tells investors in a research note. The firm says the good news is the domestic business is baselining at a 4% comp rate given AutoZone’s efforts to accelerate share gains plus the potential for more pricing. JPMorgan expects the company to continue to invest to gain share and “widen its moat” versus the competition.