Wells Fargo analyst Zachary Fadem maintained a Buy rating on AutoZone yesterday and set a price target of $4,700.00.
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Zachary Fadem has given his Buy rating due to a combination of factors that highlight AutoZone’s strong performance and future potential. Despite a temporary decline in gross margins driven by LIFO accounting adjustments, AutoZone’s fourth-quarter results were impressive, with a notable increase in domestic comparable sales and significant gains in the Do-It-For-Me (DIFM) segment. This momentum is expected to continue into the next fiscal year, supporting a positive outlook for the company.
Fadem also points out that AutoZone is expanding its market share and accelerating the opening of new stores and megahubs, which is expected to provide long-term growth opportunities. Furthermore, while the LIFO-related earnings per share impact is a concern, the company’s valuation compared to its peers appears attractive, suggesting potential upside. These factors combined make AutoZone a compelling investment opportunity, justifying the Buy rating.
In another report released yesterday, D.A. Davidson also reiterated a Buy rating on the stock with a $4,850.00 price target.
Based on the recent corporate insider activity of 70 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.