BTIG Cuts Low Ests on Advanced Auto (AAP) Further Following Q2 Report; Affirms at 'Sell'

BTIG is cutting estimates on Sell-rated Advance Auto Parts (NYSE: AAP) following Q2 results issued earlier Tuesday. The firm reiterates its $120 price target on the stock.

Analyst Alan Rifkin said, AAP reported 2Q16 EPS of $1.90, $0.24 below our estimate of $2.14. Comp sales declined (4.1)%, slightly ahead of our (4.5)% estimate. AAP maintained its full-year comp sales guidance of (3-5)%, highlighting our view that it will take time for turnaround efforts to take hold. We are lowering our 2016 and 2017 EPS estimates significantly, which were already below-consensus, to $7.55 from $7.80 and $7.90 from $8.00, respectively. Our 2017 estimate is $0.85 below the Street, as we do not believe AAP can achieve the degree of margin expansion the Street is anticipating.

For an analyst ratings summary and ratings history on Advance Auto Parts click here. For more ratings news on Advance Auto Parts click here.

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