In a report released yesterday, Robert Ohmes from Bank of America Securities maintained a Buy rating on AutoZone, with a price target of $4,800.00.
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Robert Ohmes has given his Buy rating due to a combination of factors that highlight AutoZone’s strategic positioning and growth potential. The implementation of dynamic slotting in their hub stores enhances inventory availability, allowing AutoZone to better serve its commercial customers and improve delivery times. This system enables the hubs to accommodate significantly more parts, thereby increasing efficiency.
Additionally, AutoZone’s expansion of mega hubs, which ramp up faster due to their larger volume, is expected to bolster its market share in both the DIY and professional segments. The company’s investments in technology, such as screen tracking in commercial stores, are proving beneficial in optimizing operations and targeting high-margin commercial customers. Despite some near-term challenges from inflation and LIFO charges, AutoZone’s ability to pass on costs and its recession-resilient business model support the confidence in its continued growth and market share gains.
In another report released on September 25, Roth MKM also reiterated a Buy rating on the stock with a $4,750.00 price target.
Based on the recent corporate insider activity of 68 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AZO in relation to earlier this year.