J.P. Morgan analyst Christopher Horvers has maintained their bullish stance on AZO stock, giving a Buy rating today.
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Christopher Horvers has given his Buy rating due to a combination of factors including AutoZone’s strong market share momentum and impressive topline performance. The company has shown significant growth in both its DIY and DIFM segments, with notable sales increases in local mechanics and national accounts. This growth is supported by favorable weather conditions and inflation, which have not negatively impacted demand.
Despite a temporary setback in FY26 due to LIFO accounting adjustments affecting gross margins, Horvers remains optimistic about AutoZone’s future. The expectation is that these impacts will be recaptured, leading to a stronger performance in FY27. Additionally, AutoZone’s strategic initiatives in unit growth and its leadership position in the retail sector, which is less vulnerable to online competition, further justify the Buy rating. The December 2026 price target reflects confidence in the company’s ability to maintain leverage levels and drive shareholder value through share repurchases.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $4,700.00 price target.