Analyst Michael Lasser from UBS maintained a Buy rating on O’Reilly Auto and keeping the price target at $120.00.
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Michael Lasser has given his Buy rating due to a combination of factors that highlight O’Reilly Auto’s strong performance and potential for future growth. The company’s third-quarter results were solid, with earnings per share meeting expectations and outperforming consensus estimates. O’Reilly Auto’s comparable store sales growth of 5.6% significantly surpassed the industry average, marking the fourth consecutive quarter of outperformance, which demonstrates the company’s robust market position.
Additionally, O’Reilly Auto has shown gross margin expansion, which is a positive indicator of operational efficiency. Despite concerns about the growth in selling, general, and administrative expenses, the company has managed to raise its earnings outlook, partly due to a favorable adjustment in the effective tax rate. This combination of strong sales performance, margin improvement, and an optimistic earnings outlook supports the Buy rating, as it suggests the company is well-positioned to continue delivering value to shareholders.
In another report released today, Morgan Stanley also reiterated a Buy rating on the stock with a $115.00 price target.