UPDATE: Wedbush Initiates Coverage on AutoZone with Neutral Rating, $440 PT Awaiting Lessening of Industry Headwinds

In a report published Tuesday, Wedbush analyst Seth Basham initiated coverage on

with a Neutral rating and $440.00 price target. In the report, Wedbush noted, “Initiating coverage on AZO with a NEUTRAL rating and a $440 price target. We believe AZO offers exposure to a stable industry leader with the highest ROIC in hardlines retail, but we remain on the sidelines until industry headwinds fade. In 2005, AZO went through a renaissance with the appointment of Bill Rhodes as CEO. Mr. Rhodes enhanced DIY service levels, reinvigorated company culture and focused the company on improving returns, leading the company to compounded annual EPS growth of 18%.” AutoZone closed on Monday at $426.04.