Market Overview

UPDATE: Stifel Nicolaus Raises PT on AutoZone on Multiple Positive Factors

Related AZO
Simons-Founded Renaissance Technologies Buys Apple, Closes Facebook, Trims McDonald's In Q4
5 Services Stocks With The Highest EPS
The Best Scoring Stocks To Buy Now (Seeking Alpha)

In a report published Wednesday, Stifel Nicolaus analyst David Schick reiterated a Buy rating on AutoZone (NYSE: AZO), and raised the price target from $410.00 to $470.00.

In the report, Stifel Nicolaus noted, “Our auto parts thesis remains intact. And AZO keeps their focus, growing margin and buying back stock – and the summer heat generating winter-seeded breakage is starting to occur. A non-winter from 2011-2012 reduced parts breakage for the following year and we are now starting to see delayed breakage flow through the model. One month is not a trend (as management noted) but our proprietary Retail READ consumer survey continues to show auto parts breakage accelerating into May. The combination of stronger topline and improving product margin trends could drive earnings higher throughout the remainder of the calendar year, and subdued gasoline prices means even discretionary spending may happen (assuming macroeconomic trends do not worsen). Industry strength bodes well for ORLY (Buy, $112.21) and AAP (Hold, $87.18) as well, though fiscal calendar differences mean AAP 1Q13 (reporting on Thursday 5/23) will have somewhat less exposure to better trends into April/May. AZO now trades at 9.1x EV/EBITDA on our CY14 estimates, or roughly a 10% premium to our coverage group.”

AutoZone closed on Tuesday at $427.84.

Latest Ratings for AZO

Jan 2015CitigroupMaintainsBuy
Dec 2014UBSMaintainsNeutral
Dec 2014NomuraMaintainsBuy

View More Analyst Ratings for AZO
View the Latest Analyst Ratings

Posted-In: David Schick Stifel NicolausAnalyst Color Price Target Analyst Ratings


Related Articles (AZO)

Around the Web, We're Loving...

Get Benzinga's Newsletters

Our Experts vs. S&P 500Powered by Benzinga
Marketfy Products Return S&P 500
Morning Profit Maker 42.72% 6.69%
The Option Prophet 91.14% 6.69%
SecretCaps 26.55% 6.69%
Short-Term Trend Trading 11.89% 6.69%
View the highest rated products→