UPDATE: Deutsche Bank Upgrades AutoZone to Buy on Favorable Exposure to Trends

Deutsche Bank raises its rating on AutoZone

from Hold to Buy and increases its price target from $385 to $425. Deutsche Bank notes, "The upgrade is based on four factors: (1) Economic concerns should weigh against new car sales and gas prices are falling, both of which are favorable for AZO's comps; (2) AZO has the best opportunity for further share gains in commercial which leads to industry leading sales trends; (3) operating margins continue to increase, helped by stable pricing and leverage; and (4) stocks with defensive characteristics should get a higher relative multiple in a difficult macro environment." AZO closed at $375.03 on Monday.