TD Cowen analyst Max Rakhlenko has maintained their neutral stance on AAP stock, giving a Hold rating today.
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Max Rakhlenko has given his Hold rating due to a combination of factors affecting Advance Auto Parts. The company has shown solid performance in the third quarter with a 3% increase in comparable sales, but the outlook for the fourth quarter appears uncertain due to consumer weakness and softer transaction trends. There is a cautious approach towards the company’s ability to gain market share, particularly in the Do-It-For-Me (DIFM) segment, where transaction growth is lagging behind competitors.
Additionally, while there are ongoing efforts to improve margins, the trajectory remains unclear. The expectation for core EBIT margin expansion has been modestly delayed, and while there are potential upsides for fiscal year 2027 if management executes their plans effectively, there are headwinds such as capitalized inventory costs that could impact next year’s performance. Despite these challenges, the company’s diversified sourcing strategy and recent capital raise provide some stability, but overall, these mixed factors contribute to the Hold rating.
According to TipRanks, Rakhlenko is a 4-star analyst with an average return of 9.0% and a 60.22% success rate. Rakhlenko covers the Consumer Cyclical sector, focusing on stocks such as Floor & Decor Holdings, Boot Barn, and Planet Fitness.
In another report released today, Roth MKM also maintained a Hold rating on the stock with a $55.00 price target.