Oppenheimer Holdings Reiterates Outperform Rating on AutoZone
In a report published Wednesday, Oppenheimer Holdings reiterated its Outperform rating on AutoZone (NYSE: AZO).
Oppenheimer noted, “We view the fiscal fourth quarter (period ended Aug.) results that AutoZone reported today as consistent with recent announcements from other leading chains in the aftermarket auto parts business. EPS of $8.46 compared with a Street figure of $8.42 and expanded about 18% from $7.18 last year. Comp store sales in the period rose just 2.1% and fell modestly short of a consensus forecast for a 3% gain. Better gross margins and continued aggressive share repurchases offset the impacts of weakish sales. Weather has been challenging for the sector lately. We believe, however, that recent sales weakness at AZO and others in the counter-cyclical after-market auto parts business reflects that beginnings of a more significant economic improvement. Our Outperform rating on AZO reflects the substantial opportunity for the company to continue to generate outsized cash and repurchase shares.”
AutoZone closed on Tuesday at $357.84.
Latest Ratings for AZO
|Jan 2017||Guggenheim||Initiates Coverage On||Buy|
|Dec 2016||Atlantic Equities||Initiates Coverage On||Neutral|
|Dec 2016||JP Morgan||Upgrades||Neutral||Overweight|
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.