UPDATE: Bank of America Raises PO on Advance Auto Parts to $90

Bank of America has published a research report on Advance Auto Parts AAP after the company reported 4Q EPS of $0.90 vs. $0.57 last year. In the report, Bank of America writes, "[4Q EPS] was ahead of our $0.72 estimate, which had been at the high-end of implied 4Q guidance of $0.67-$0.72. Relative to our estimates, better-than-expected SG&A leverage drove the majority of the beat. Same-store sales increased 2.9%, versus 8.9% last year. This was slightly above our 2.5% estimate and, on a two-year basis is inline with 3Q. We estimate DIY comps were approximately (1.5)%, while Commercial comps were around 10%. While retail traffic was still in negative territory, management did note that milder winter weather did promote some incremental DIY purchases, such as oil and brake-related items. EBIT margin increased 182 bps, to 8.43%, due to a 221 bp improvement in SG&A and a 39 bp GM decline." Bank of America maintains its Neutral rating on Advance Auto Parts, which is currently trading up $6.29 from yesterday's $79.40 closing price.