UPDATE: Deutsche Bank Downgrades AutoZone to Hold, Reiterates $410 PT As Stock Hits Price Target

In a report published Monday, Deutsche Bank analyst Mike Baker downgraded the rating on AutoZone

from Buy to Hold, but reiterated the $410.00 price target. In the report, Baker noted, “AZO's stock is up 15.4% YTD versus 12.0% and 14.4% for the S&P 500 and S&P Retail Index and it has now hit our $410 price target. This target is based on 13x our calendar 2014 EPS estimate. This is a discount to our long term growth rate assumption of 15%, justified because 8p of the growth comes from buybacks, with only 7% from operations on our model. Also, the long term average multiple is in the 12.5x-13.0x range.” AutoZone closed on Friday at $420.95.