Argus Downgrades Shares Of AutoZone, Inc.

On Thursday, analysts at Argus downgraded shares of AutoZone Inc AZO from Buy to Hold.

Analysts based the downgrade on weaker than expected sales trends stating, “In the fourth quarter of fiscal 2014, year-over-year revenue decreased 1.5% to $3.05 billion, and comp-store sales growth increased only 2.1%, below the consensus estimates of 2.7%. Recent industry trends suggest a continuation of below-plan sales results for the rest of the year.”

Moreover, analysts find that AutoZone has high expose to the do it yourself market which is the segment that shows slowing sales trends and weaker long-term prospects

“AutoZone seems susceptible to lower-than-expected revenue trends, based on the company’s highly leveraged exposure to the DIY market which continues to experience softer sales results.”

Shares of AutoZone closed Thursday’s session at $504.62, down 0.79 percent.