BTIG Research Initiates AutoZone At Buy, Says Co. Has 39 Straight Quarters Of Double-Digit Earnings Growth

After Wednesday's closing bell BTIG Research started coverage of AutoZone AZO with a Buy rating and established a $900 PT. Analyst Alan Rifkin focuses on AutoZone's ROIC (Return on Invested Capital) which is north of 31 percent and is "the highest by a considerable margin within our coverage universe."  Rifkin says AutoZone has demonstrated a capability of achieving value for shareholders through capital allocation via low risk ventures.  The company has consistantly delivered results, generating an "admirable cash flow."

Throughout the past 17 years, Rifkin says AutoZone has repurchased 82 percent of shares outstanding while net income grew at a 11% CAGR and EPS grew at 21 percent CAGR.  Shares of AutoZone appreciated more than 20-fold over the same period.  

A renewed focus on commerical programs has helped the auto parts retailer increase market share and Rifkin says room remains for AutoZone to penetrate further into the commerical space, thanks to support from Hub and Mega-Hub strategies.

Rifkin expects EPS to grow 11-12 percent through 2018.

Shares of AutoZone closed the regular session at $760.75, down $1.45 or -0.19 percent.