AutoZone price target raised to $2,650 from $2,350 at MKM Partners

MKM Partners analyst David Bellinger raised the firm’s price target on AutoZone to $2,650 from $2,350 and keeps a Buy rating on the shares. The 3% stock price decline after the company’s Q1 earnings beat was a "sell the news" event, with shares significantly outperforming year-to-date, the analyst tells investors in a research note. Bellinger continues to see consistent comp sales gains through the balance of the year for AutoZone as DIY segment trends have firmed up, along with the potential for gross margins to rebound in the back half now that elevated freight/LIFO charges seem to be fading off.