UPDATE: J.P. Morgan Upgrades O'Reilly Automotive to Neutral from Overweight

According to a research report this morning, J.P. Morgan upgrades O'Reilly Automotive's

rating to Neutral from Overweight as the retail summer stock seasonality plans to work in their favor. J.P. Morgan continued, “The recent acceleration in the DIY business (that was affirmed by GPC), strong execution in CSK, and consistent share repurchases should drive solid results when the company reports Wednesday after the close. Thus, while we believe valuation is overextended (21x consensus 2012 vs. 18x historically) and expectations high heading into the quarter, stocks that beat numbers tend to move higher unless the story is changing (which isn't expected to be apparent).” O'Reilly closed yesterday at $95.35 with a PT increase from $78 to $97.