Market Overview

UPDATE: Morgan Stanley Downgrades AutoZone to Underweight on Payroll Tax Expiration

Related AZO
Morgan Stanley's 2015 Outlook For Auto Parts Retailers
UPDATE: Credit Suisse Reiterates On AutoZone On Strong Q1 Results
Stocks Fall as China, Greece Reignite Global Jitters (Fox Business)

Morgan Stanley downgraded AutoZone (NYSE: AZO) from Equal-weight to Underweight and announced a $340 price target.

Morgan Stanley noted, "AZO generates 85% of its auto parts revenue from DIY, a segment we believe is most at risk to payroll tax expiration given its skew towards low income consumers. Also, F1Q13 marked the third consecutive quarter of significantly slower commercial growth, and our channel checks suggest that NAPA and ORLY maintain a clear edge in this area, despite AZO's push to gain share. Lastly, AZO comps have a high correlation with dollar stores, which have seen trends decelerate."

AutoZone closed at $356.17 on Monday.

Latest Ratings for AZO

DateFirmActionFromTo
Dec 2014UBSMaintainsNeutral
Dec 2014NomuraMaintainsBuy
Dec 2014Credit SuisseMaintainsOutperform

View More Analyst Ratings for AZO
View the Latest Analyst Ratings

Posted-In: Morgan StanleyAnalyst Color Downgrades Pre-Market Outlook Analyst Ratings

 

Related Articles (AZO)

Around the Web, We're Loving...

Get Benzinga's Newsletters