Credit Suisse Sees AutoZone Growing DIFM in Small Smart Chunks

In a report published Thursday, Credit Suisse analyst Gary Balter reiterated an Outperform rating and $550.00 price target on

. In the report, Credit Suisse noted, “AZO's stock has been essentially stuck in neutral the past few months as better weather has helped but not fully translated into measurable upside. While the clear retail leader, AZO has been viewed as a laggard in the faster growing DIFM segment. While the small move they made Tuesday to acquire IMC does not have the impact of a CARQUEST, AutoZone quietly acquired the number two player in OE foreign parts, a WORLDPAC clone, and very well-positioned company for growth on its own and possibly through AutoZone's stores. We view it as a smart acquisition by Mr. Rhodes and team, and reiterate our Outperform on this name.” AutoZone closed on Wednesday at $537.13.