Market Overview

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

Share:
Related AZO
Credit Suisse Sticking With Auto Parts Retailers, Sees AutoZone At $750
13 Predictions For The Hardline Industry In 2016
Credit Suisse weighs in on the auto parts stores sector (Seeking Alpha)

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
Feb 2016Credit SuisseMaintainsOutperform
Dec 2015Deutsche BankMaintainsHold
Oct 2015OppenheimerUpgradesPerformOutperform

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)

View Comments and Join the Discussion!

Get Benzinga's Newsletters