Autozone Gets 4.8% Price Target Increase and Strong Buy Rating from Truist Securities Analyst

By Don Francis, Editor
April 3, 2024 7:39 AM UTC
Autozone Gets 4.8% Price Target Increase and Strong Buy Rating from Truist Securities Analyst

Truist Securities's Scot Ciccarelli raised their price target on Autozone (NYSE: AZO) by 4.8% from $3,363 to $3,523 on 2024/04/02. The analyst maintained their Strong Buy rating on the stock.

According to Ciccarelli, the price target hike was driven by a thorough analysis of their Consumer Cyclical (Hardlines/Broadlines Retail) coverage area. The analyst highlighted that the Q4 earnings season for covered retailers has been promising, with Truist Securities' Credit Card Data indicating solid spending patterns across the group.

Truist Securities revised its price targets to account for a "more expansive market multiple," reflecting their increased optimism for the sector. Despite retailers still anticipating weaker trends in the first half of 2024, Ciccarelli expects "somewhat stronger sales" in the second half as easier comparisons come into play.

In addition to the price target adjustment for Autozone, Ciccarelli made several changes to other companies in their portfolio. They raised the price target on Advance Auto Parts Inc by 16.7%, from $60 to $70, while maintaining a Hold rating. Lowes Companies Inc saw a 5% increase in price target, from $258 to $271, and maintained a Strong Buy rating. O Reilly Automotive Inc had its price target raised by 7.4% to $1,234, and Tractor Supply Co's target was increased by 8.2% to $277. Both companies also retained their Strong Buy ratings. Lastly, Genuine Parts Co had its price target raised by 6.4% to $167, while maintaining a Strong Buy rating.

Analysts' opinions on Autozone remain mostly positive, with 80% of top-rated analysts rating the stock as a Strong Buy or Buy. Only 20% see it as a Hold, and no analysts recommend selling the stock.

The consensus forecast among analysts predicts that Autozone will deliver earnings per share (EPS) of $138.91 in the upcoming year. If these predictions hold true, it would represent a 4.9% decrease in EPS on a year-over-year basis.

Looking at the stock's performance, Autozone's price has risen by 18.3% since its last quarterly report on 2024/02/10. Year-over-year, the stock is up by 26.2%. During this period, Autozone has outperformed the S&P 500, which is also up by 26.2%.

Scot Ciccarelli, the Truist Securities analyst responsible for the recent rating and price target adjustment, is ranked in the top 3% of Wall Street analysts by WallStreetZen. With an average return of 14.4% and a win rate of 68.5%, Ciccarelli specializes in the Consumer Cyclical, Industrials, and Consumer Defensive sectors.

AutoZone, Inc. is a retail and distribution company that specializes in automotive replacement parts and accessories. The company's stores offer product lines for various vehicles, including cars, sport utility vehicles, vans, and light trucks, as well as accessories and non-automotive products. AutoZone also provides ALLDATA brand diagnostic and repair software through its website, www.alldata.com. Founded in 1979, the company is headquartered in Memphis, TN.

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