UPDATE: JP Morgan Upgrades Advance Auto Parts to Overweight on Positive Comps Outlook
JP Morgan upgraded Advance Auto Parts (NYSE: AAP) from Neutral to Overweight and raised the price target from $85.00 to $90.00.
JP Morgan said, "We are upgrading AAP to Overweight as we believe the combination of a soft landing for the industry, continued DIFM share opportunities, improved fulfillment, the highest exposure to normalized weather vs. easy comparisons, and better execution should lead to a return to positive comps. Additionally, management noted its intent to return to opportunistic buybacks after a hiatus of nearly five quarters. Combined with the potential compounding of EBITDA growth to the buyback via increased leverage, this should all result in accelerated EPS growth throughout 2013."
Advance Auto Parts closed at $77.14 on Thursday.
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