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Is Monro Muffler Brake a Killer Play For 2013?

Is Monro Muffler Brake a Killer Play For 2013?
Related MNRO
Monro Muffler Brake Earnings Summary
Earnings Scheduled For May 22, 2014

Monro Muffler Brake (NASDAQ: MNRO), a company that provides brake and tire servicing for commercial and consumer vehicles, was upgraded by ISI Group this morning to a Buy rating while having its price target raised from $35 to $42.

The report cited 60 years of cyclical buying trends in the tire market and stated that a two year deferral cycle for tire purchases is coming to a close.

Combine this with Chinese tariff reductions on tires, and ISI Group thinks there is a strong case for a coming upside.

Later in the report, M&A accretion was cited to help provide some EPS growth in the near future, while blizzard Nemo provides the near term catalyst needed to help boost sales in the short term, as can be seen in auto parts retailer earnings such as AutoZone (NYSE: AZO) and O'Reilly Automotive (NASDAQ: ORLY).

On top of these bullish indicators, the stock carries a short float of over 21 percent, making it particularly prone to squeezes. If Monro were to release a strong earnings report like the upgrade suggests it will, shares should appreciate sharply as the naysayers rush toward the exits.

Over the past 3 months shares have appreciated just over nine percent, showing some strong growth, and possibly hinting at a coming boost. Technicals suggest strong resistance at the $39.38 level, but if it breaks through that it looks to have some strong upside.

Shares are currently unchanged in the pre-market, resting at the Friday close of $37.25.

Latest Ratings for MNRO

DateFirmActionFromTo
Dec 2013KeyBancInitiates Coverage onBuy
Sep 2013ISI GroupDowngradesBuyNeutral
May 2013Stifel NicolausMaintainsBuy

View More Analyst Ratings for MNRO
View the Latest Analyst Ratings

Posted-In: ISI GroupUpgrades Analyst Ratings Trading Ideas Best of Benzinga

 

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