Goldman Sachs raised the firm’s price target on AutoZone (AZO) to $4,090 from $3,894 but keeps a Neutral rating on the shares. The company’s Q4 earnings miss was driven by lower-than-expected margins, and although the majority of the margin pressure was due to non-cash LIFO headwinds that are expected to reverse over time, SG&A expenses also came in higher than expected, and margins appear set to remain pressured in the near term, the analyst tells investors in a research note.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on AZO:
- Morning News Wrap-Up: Tuesday’s Biggest Stock Market Stories!
- Trump links Tylenol use to autism, AutoZone reports downbeat Q4: Morning Buzz
- AZO Earnings: AutoZone Stock Drops After Missing Q4 Profit Estimates
- Morning Movers: Boeing up as lawmakers talk up deal for China to buy more jets
- Video: CoreWeave among early risers after pair of upgrades