Market Overview

UPDATE: Piper Jaffray Downgrades O'Reilly Automotive to Neutral on Rising Industry Headwinds

Related ORLY
O'Reilly Automotive Tops Q2 Earnings on Operational Merit
Top Performing Industries For July 24, 2014

Piper Jaffray reduced its rating on O'Reilly Automotive (NASDAQ: ORLY) from Overweight to Neutral and lowered its price target from $102 to $85.

Piper Jaffray noted, "We are downgrading ORLY to Neutral from OW based on four primary concerns: (1) industry headwinds appear set to build into 2014 & 2015 due to changing dynamics with the vehicle repair sweet spot; (2) ORLY's EPS multiple at ~17x is the most at risk in the auto part retail group; (3) the CSK conversion comp driver, while still present, has likely reached a point of diminishing benefit; and (4) ORLY is underexposed to upper Midwest and Northeast and a weather snap-back will not be as beneficial compared to others in the group."

O'Reilly Automotive closed at $91.65 on Friday.

Posted-In: Piper JaffrayAnalyst Color Downgrades Pre-Market Outlook Analyst Ratings

 

Most Popular

Related Articles (ORLY)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters

Benzinga Professional