Market Overview

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

Related AAP
American Apparel Signs Support Agreement With Standard General
Advance Auto Parts Names David Allen Senior Vice President, Supply Chain Management

In a report published Thursday, Citigroup analyst Kate McShane reiterated a Neutral rating on Advance Auto Parts (NYSE: AAP), 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.

Posted-In: Citigroup Kate McShaneAnalyst Color Price Target Analyst Ratings

 

Most Popular

Related Articles (AAP)

Around the Web, We're Loving...

Partner Network

Get Benzinga's News Delivered Free