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AutoZone price target raised to $4,100 from $3,850 at BMO Capital

BMO Capital raised the firm’s price target on AutoZone (AZO) to $4,100 from $3,850 and keeps an Outperform rating on the shares. The company’s Q3 earnings came in lighter than expected, with margin pressure from an ongoing mix shift towards commercial, FX, and ongoing growth investments, but while these factors will continue to impact the company in Q4, the firm’s long-term outlook remains favorable, expecting AutoZone to continue gaining market share in a still fragmented industry and given its anticipated return to steadily compounding earnings growth, the analyst tells investors in a research note.

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