Market Overview

Raymond James Upgrades O'Reilly Automotive On Bright Prospects

Share:
Raymond James Upgrades O'Reilly Automotive On Bright Prospects

While O'Reilly Automotive Inc’s (NASDAQ: ORLY) near-term prospects for 2021 appear bright, its current stock valuation seems attractive for investors with long-term horizons as well, according to Raymond James.

The O'Reilly Analyst: Matthew McClintock upgraded O'Reilly Automotive's stock from Market Perform to Outperform, while establishing a price target of $550.

The O'Reilly Thesis: Management has recently expressed optimism around the company’s sales growth remaining strong, even amid deteriorating macroeconomic conditions, McClintock said.

O'Reilly Automotive seems even better positioned to gain market share in the post-COVID era, since independents are likely to “face relatively worse inventory replenishment challenges in the current environment,” the analyst wrote in a note.

He also expects the expected decline in discretionary purchases to benefit auto part retailers “from previously "unperformed maintenance" during challenging economic times.”

“Lastly, we certainly expect the current trend of sequential improvement in vehicle miles driven growth to continue going forward, which likely benefits the DIFM business in an outsized manner relative to DIY,” said McClintock.

ORLY Price Action: Shares of O'Reilly Automotive had risen by 0.66% to $470.07 at the time of publication Monday.

Photo credit: Michael Barera, from Wikimedia Commons

Latest Ratings for ORLY

DateFirmActionFromTo
Oct 2020Raymond JamesUpgradesMarket PerformOutperform
Aug 2020DA DavidsonInitiates Coverage OnNeutral
Jul 2020WedbushMaintainsNeutral

View More Analyst Ratings for ORLY
View the Latest Analyst Ratings

 

Related Articles (ORLY)

View Comments and Join the Discussion!

Posted-In: Matthew McClintock Raymond JamesAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

Latest Ratings

StockFirmActionPT
PLTHCanaccord GenuityMaintains6.0
VLDRCraig-HallumInitiates Coverage On23.0
MFACNorthland Capital MarketsInitiates Coverage On15.0
CEREJefferiesInitiates Coverage On18.0
GIIIUBSInitiates Coverage On22.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
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.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com