UPDATE: J.P. Morgan Upgrades Autozone from Neutral to Overweight; Increases PT

According to a research report this morning, J.P. Morgan upgrades Autozone

from a Neutral to Overweight rating while rising the December 2012 PT from $405 to $435. J.P. Morgan explained, “We are upgrading AZO to Overweight for the following reasons: (1) AZO's accelerated investment into its commercial initiative provides a baseline 3% comp for the medium term (any DIY gain is gravy on top); (2) the company's cost discipline and commitment to maintain leverage to drive the buyback enhances the stock/earnings revision risk-reward (even if “only a 3 comp”); (3) given these factors we believe valuation remains attractive (relatively and absolutely); and (4) unfavorable discretionary retail stock seasonality is looming and we favor adding exposure to a defensive GARP stock with idiosyncratic topline opportunities and secular tailwinds.” Autozone closed yesterday at $19.83.