UPDATE: Citigroup Raises PT on AutoZone on Flattish Results, Favorable Long-Term Thesis

In a report published Wednesday, Citigroup analyst Kate McShane reiterated a Buy rating on

, and raised the price target from $490.00 to $545.00. In the report, Citigroup noted, “AZO's traffic was challenged during the quarter while the lack of an inflationary catalyst weighed on average ticket growth. These industry drivers mirror recent commentary from peers. Though a 0.9% comp fell below our and consensus expectations, the company was still able to generate positive results and grow the commercial business despite lukewarm demand for auto parts due to a constrained lower end consumer environment. In addition, AZO continued to make headway on the DIFM front as it grew commercial sales by 13.9% y/y (+0.5% on a per average commercial program basis).” AutoZone closed on Tuesday at $71.86.