Stifel Nicolaus Reiterates Hold on AutoZone

Stifel Nicolaus maintains its Hold rating on AutoZone, Inc. AZO as the company shows more SG&A control. Stifel says, “We don't think AZO is entering a new SG&A cut phase – but it's worth watching as (1) there is a big opportunity as they have spent in advance/anticipation of slowdown but (b) we don't think SG&A beats help multiple. AZO's balance lessens its volatility – which we see as an important bolster of multiple over time.” AZO closed at $337.81 per share on Tuesday.