Analyst Max Rakhlenko of TD Cowen maintained a Buy rating on O’Reilly Auto, retaining the price target of $125.00.
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Max Rakhlenko has given his Buy rating due to a combination of factors that highlight O’Reilly Auto’s potential for growth despite some near-term challenges. The company is expected to see an increase in same-SKU inflation, which could positively impact their financial performance in the upcoming quarters. Although the DIY consumer segment is experiencing some retrenchment, O’Reilly’s management has noted that the company is still maintaining positive comps, suggesting resilience in the face of these challenges.
Furthermore, O’Reilly’s strong performance in the DIFM (Do-It-For-Me) market is a significant factor in the Buy rating. The company has been successful in taking market share and is expected to continue this trend with strategic initiatives such as expanding hub stores and making technological investments. These efforts position O’Reilly to outperform its peers, particularly as it navigates an increasingly complex operational environment. Overall, these strategic moves and market positioning contribute to a positive long-term outlook for O’Reilly Auto.
In another report released on October 24, Goldman Sachs also maintained a Buy rating on the stock with a $121.00 price target.
Based on the recent corporate insider activity of 57 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 ORLY in relation to earlier this year.