AutoZone price target raised to $2,500 from $2,425 at DA Davidson

DA Davidson analyst Michael Baker raised the firm’s price target on AutoZone to $2,500 from $2,425 but keeps a Neutral rating on the shares after its Q4 earnings beat. The company’s slight miss to comps, particularly on the commercial side, was offset by better than expected gross margins, the analyst tells investors in a research note, also noting that the firm is raising its FY24 EPS view for AutoZone to $144.49 from $135.36. DA Davidson further notes however that while theoretically, the UAW strike should be a positive for the company due to fewer new car inventory leading to better used car sales which ultimately helps the auto parts retailers, the empirical evidence from the last strike is less clear.