On Sep 25, major Wall Street analysts update their ratings for $AutoZone (AZO.US)$, with price targets ranging from $3,125 to $3,500.
Morgan Stanley analyst Simeon Gutman maintains with a buy rating, and adjusts the target price from $3,038 to $3,125.
J.P. Morgan analyst Christopher Horvers maintains with a buy rating, and adjusts the target price from $3,110 to $3,275.
BofA Securities analyst Robert Ohmes maintains with a hold rating, and maintains the target price at $3,222.
Citi analyst Steven Zaccone maintains with a buy rating, and adjusts the target price from $3,250 to $3,500.
UBS analyst Michael Lasser maintains with a buy rating, and adjusts the target price from $3,340 to $3,500.
Furthermore, according to the comprehensive report, the opinions of $AutoZone (AZO.US)$'s main analysts recently are as follows:
AutoZone's Q4 financial results continue to support the positive outlook on its shares. The basis for this includes the company's ability to maintain mid-single digit growth in operating income, coupled with a similar percentage decrease in its share count, collectively contributing to a double-digit rise in earnings per share.
Even as estimates are adjusted, the underlying fundamentals remain primarily stable, with the belief that the stock's valuation is not excessive for a well-situated company in a defensive sector expected to return to normalized top-line growth in the medium term. The company is seen as a reliable grower with the potential to keep expanding its market share domestically.
The company's fiscal Q4 results did not meet expectations on both revenue and earnings fronts. It's observed that the auto parts retail sector is facing softer demand, which can be attributed to the budget tightening of lower-income consumers, postponement of significant auto maintenance, and a reduction in discretionary do-it-yourself expenditures. Nonetheless, with the anticipation that consensus estimates have been recalibrated following these results, there is a sentiment that the company's business model is well-positioned for a resurgence in earnings growth by fiscal 2026.
AutoZone's fiscal Q4 results have demonstrated the company's commitment to investing for future growth amidst a subdued demand for auto parts. The analyst highlighted the reduction in the forecast for FY25 EPS by 4% to $156.60 but emphasized that the company's consistent share gain, pricing power, and strong capital management constitute a 'winning recipe' for superior returns, especially as the stock is currently trading at approximately a 15% discount to the market.
AutoZone's Q4 operating results had varied outcomes, yet the company is positioned for potential growth in the coming years with a strong real estate pipeline. This development is expected to facilitate an increase in square footage growth on a global scale. Additionally, the expansion of AutoZone's hub and mega hub rollouts is anticipated to contribute positively to the company's long-term growth prospects.
Here are the latest investment ratings and price targets for $AutoZone (AZO.US)$ from 13 analysts:
Note:
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