Evercore ISI lowered the firm’s price target on AutoZone (AZO) to $3,930 from $3,950 and keeps an Outperform rating on the shares, which the analyst is removing from the firm’s “Tactical Outperform” list with the earnings catalyst having passed. AutoZone delivered “solid topline/share performance” at a cost of margin investment in fiscal Q3, says the analyst, who is “encouraged by the best comp in years driven by commercial growth.” However, the 80 basis point decline in gross margin and 185 basis point EBIT margin compression show that taking sustainable share gains came at a near term cost, the analyst added.
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Read More on AZO:
- AutoZone price target raised to $4,000 from $3,750 at Morgan Stanley
- AutoZone price target raised to $4,200 from $4,000 at Raymond James
- AutoZone price target raised to $4,100 from $3,850 at Guggenheim
- AutoZone price target lowered to $4,200 from $4,350 at JPMorgan
- AutoZone’s Strong Market Position and Strategic Investments Justify Buy Rating