Morgan Stanley analyst Simeon Gutman maintains $AutoZone (AZO.US)$ with a buy rating, and adjusts the target price from $3,038 to $3,125.
According to TipRanks data, the analyst has a success rate of 61.5% and a total average return of 2.8% over the past year.
Furthermore, according to the comprehensive report, the opinions of $AutoZone (AZO.US)$'s main analysts recently are as follows:
AutoZone's Q4 results have not significantly altered the supportive thesis for the stock, which is predicated on the belief that the company can maintain mid-single digit growth in operating income. This growth is expected to be augmented by a comparable reduction in share count, thereby contributing to double-digit growth in earnings per share.
Despite a reduction in estimates, the underlying fundamentals for AutoZone remain largely the same, with the observation that the stock's valuation is reasonable for a company well-situated in a defensive sector anticipated to return to normal levels of top-line growth over time. AutoZone is recognized as a strong compounding entity with the potential to further capture market share within the domestic landscape.
AutoZone's fiscal Q4 outcomes fell short of expectations in terms of both revenue and earnings. It has been observed that the auto parts retail sector is experiencing diminished demand as lower-income consumers adjust their budgets, postponing significant auto maintenance, and reducing discretionary spending on do-it-yourself projects. Nonetheless, it is anticipated that with revised expectations, AutoZone's business model is poised for a resurgence in earnings growth by fiscal 2026.
Note:
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