AutoZone downgraded to Sell from Buy at Goldman Sachs

Goldman Sachs analyst Kate McShane downgraded AutoZone to Sell from Buy with a price target of $2,917, down from $3,205. The firm repositioned its stock ratings distribution to favor companies that are more exposed to discretionary goods. It sees the discretionary category as an area for stronger growth trends over the next 12 months as the interest rate environment eases. The double downgrade is based on lower income consumer, to which AutoZone has significant exposure, likely remaining under pressure into 2025, the analyst tells investors in a research note. As cars become more affordable, Goldman sees increased risk of a lower amount of repairs.