UPDATE: Deutsche Bank Upgrades Advance Auto Parts to Buy on Multiple Positive Factors
In a report published Friday, Deutsche Bank analyst Mike Baker upgraded the rating on Advance Auto Parts (NYSE: AAP) from Hold to Buy, and raised the price target from $82.00 to $92.00.
In the report, Deutsche Bank noted, “We are upgrading AAP to Buy from Hold for four reasons. These include signs of better industry trends, relatively low expectations and a favourable risk, reward profile. In addition, AAP screens well on our just published ‘DB's MultiChannel Survival Matrix' measure. Our new price target is $92 based on 14x our 2014 EPS estimate, up from $82 previously. We are making only modest changes to our estimates which are in line with consensus this quarter, but higher in 2H13 and 2014. The biggest risk is that AAP continues to lose market share, but better industry trends should offset that risk, in our view.”
Advance Auto Parts closed on Thursday at $82.22.
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