Market Overview

O'Reilly Automotive Added To JPMorgan Analyst's 'Focus List'

Share:
O'Reilly Automotive Added To JPMorgan Analyst's 'Focus List'

Among the multiple major players in the auto parts sector, O'Reilly Automotive Inc (NASDAQ: ORLY) stands out to benefit the most from a "weather deep dive" analysis, according to JPMorgan.

The Analyst

JPMorgan's Christopher Horvers maintains an Overweight rating on O'Reilly Automotive with a $398 price target and is now included in the firm's "Analyst Focus List."

The Thesis

Weather is a key factor in determining auto parts demand in terms of both "in the moment" (i.e., freezing weather prompts battery failure) and a lagged impact (repairs from salt on roads or corrosion), Horvers said in a research report. The research firm's analysis of weather trends found the following:

  • 2019 snowfall was down year-over-year in the northeast and up in north central. Based on a geographical exposure, O'Reilly Automotive is best positioned to take advantage of the 2019 "solid but not as good as 2018" snow trends.
  • 2018 summer was "good overall," but current forecasts call for a "relatively cooler" summer, especially in the west where O'Reilly has strong exposure.
  • O'Reilly's favorable geographic exposure should help the company regain the "best comp crown" in the group.

Price Action

Shares of O'Reilly Automotive traded higher by 2.5 percent to $385.89 Monday.

Related Links:

JPMorgan Upgrades O'Reilly Ahead Of Winter's Harsh Driving Conditions

Sell-Side Raise AutoZone Price Targets Following Big Earnings Beat

Photo credit: Michael Barera, from Wikimedia Commons

Latest Ratings for ORLY

DateFirmActionFromTo
Apr 2019Morgan StanleyMaintainsEqual-WeightEqual-Weight
Apr 2019CitigroupMaintainsBuyBuy
Mar 2019Evercore ISI GroupInitiates Coverage OnIn-Line

View More Analyst Ratings for ORLY
View the Latest Analyst Ratings

Posted-In: Auto Parts cars Christopher Horvers JPMorgan weatherAnalyst Color Analyst Ratings Best of Benzinga

 

Related Articles (ORLY)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
PEPMorgan StanleyReiterates137.0
AZRXH.C. WainwrightMaintains7.0
PEPMacquarieMaintains138.0
POLBuckinghamMaintains36.0
BKBuckinghamMaintains53.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You
for registering for Benzinga’s newsletters and alerts.
• The Daily Analysts Ratings email will be received daily between 7am and 10am.
• The Market in 5 Minutes email will be received daily between 7am and 8am.
• The Fintech Focus email will be received every Friday between 2pm and 5pm.

Red Hat Reports Mixed Q4 Earnings

U.S. Bankrolls Southern Co's Vogtle With $3.7B Loan Guarantee