UPDATE: JP Morgan Lowers PT to $76 on Advance Auto Parts; Expense Cuts Impacting Sales

JP Morgan lowers its price target on Advance Auto Parts

from $92 to $76 and maintains its Neutral rating. JP Morgan notes, "Clearly, AAP has made significant investments that have closed the execution gap with its competitors over the last several years. However, as investment spending waned and operating expenses cut, we believe this had an adverse impact on sales. Two of the most crucial aspects in auto parts retail are parts availability and customer service. AAP continues to improve its inventory availability with the expansion of another 23 hubs in the quarter. However, customer service appears to be challenged as the company aggressively reduced operating expenses, particularly on the DIY side." AAP closed at $68.17 on Thursday.