UPDATE: Goldman Sachs Reiterates Sell Rating, Raises PT on Genuine Parts Company on Expectation of Slower Growth
In a report published Friday, Goldman Sachs reiterated its Sell rating on Genuine Parts Company (NYSE: GPC), and raised its price target from $62.00 to $65.00.
Goldman Sachs noted, “We expect GPC's 4Q results, due out on Tuesday, February 19, to reflect sluggish trends in key end markets. Our $0.92 estimate stands $0.01 below consensus. We expect slowing trends at GPC's Industrial division to become more evident during its 4Q report after slowdowns in industrial production growth, the ISM survey, and industrial distributor peers FAST and GWW. This may be compounded by declines in margin from reduced levels of vendor incentives. Indicators for the auto segment have been mixed after weak 4Q results from MNRO, relatively stable results from AAP, and improved results from ORLY; we expect no heroics from GPC in 4Q. We see continued secular pressure in office supplies, and slowing trends at the nascent electrical segment.”
Genuine Parts Company closed on Thursday at $70.79.
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