Wells Fargo says Advance Auto Parts (AAP)’ Q3 results were “expectedly soft” with comparable store sales declining 2.3% and worse-than-expected RemainCo margins. However, negative sentiment, margins troughing and the company’s detailed long-term path to 7% EBIT percentage in FY27 “drives today’s optimism/squeeze,” the analyst tells investors. The firm, which remains cautious, says it “would fade today’s optimism as winning takes time.” Wells maintains an Equal Weight rating and $40 price target on Advance Auto shares.
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