BTIG Initiates O'Reilly With A Buy, $310 Price Target

BTIG Research's Alan Rifkin painted a mixed picture of the Auto Parts industry in a research note Wednesday afternoon. The analyst initiated coverage on shares of AutoZone, Inc. AZO and O'Reilly Automotive Inc ORLY with Buy ratings, and initiated shares of Advance Auto Parts, Inc. AAP with a Sell recommendation.

Rifkin cited three main reasons for the O'Reilly Buy rating:

1. consistent earnings growth;
2. sector-leading long-term growth profile; and,
3. strong industry dynamics.

"We believe O’Reilly will continue to
benefit from an aging automotive fleet of nearly 250 million cars and light
trucks, longer term increases in average miles driven, lower sustained gas
prices, and the low cyclicality of the automotive industry," Rifkin told BTIG clients.

Rifkin assigned a $310 price target on shares of O'Reilly.