UPDATE: Deutsche Bank Downgrades Advance Auto Parts to Hold
Deutsche Bank has published a research report on Advance Auto Parts (NYSE: AAP) and has downgraded the company from Buy to Hold as outlook for the company has changed.
In the report, Deutsche Bank writes, "Our Buy rating had been predicated on market share gains, particularly in the commercial business, improvements in DIY and expense savings. This had worked since our initiation with a Buy and the stock had outperformed even with recent weakness, up 17.9% YTD compared to the market up 5.3% and the S&P Retail Index up 17.7%. But, AAP's comp of 2.1% against easier comparison compared to ORLY's (Hold,$97.54) comp of 6.1% through March 31 and AZO's (Hold,$376.38) 5.9% through February 11th shows share loss even in the face of what appears to be improving industry data. As comparisons become more difficult, we'd expect trends to remain challenged. So, it looks like the share gain story in commercial as well as the improvements in DIY, which both occurred last quarter, have stopped."
Deutsche Bank currently has a $97 price target on Advance Auto partners, which is currently trading down $12.40 from yesterday's $82.10 closing price.
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