UPDATE: Citigroup Raises PT on Advance Auto Parts as Acquisition Execution Overhang Remains

In a report published Thursday, Citigroup analyst Kate McShane reiterated a Neutral rating on

, and raised the price target from $83.00 to $96.00. In the report, Citigroup noted, “The all-cash transaction of 1,200+ co.-owned CARQUEST stores along with distribution to 1,400+ ind.-owned locations eclipses the BWP acquis. of 124 co.-owned stores last Dec. On a ttm basis, the combined entity generated $9.2B in revenue and $1.1B in EBITDA. The deal is expected to close by late '13 or early '14 & will be financed through a combination of cash, senior notes, term loan, & a revolver. AAP expects to maintain its investment grade rating & aims to repay the term loan and revolver within 24 months.” Advance Auto Parts closed on Wednesday at $96.16.