Morgan Stanley Reiterates Overweight on Advance Auto Parts (AAP) Following 2Q

August 18, 2016 11:57 AM EDT
Get Alerts AAP Hot Sheet
Price: $141.93 +0.45%

Rating Summary:
    12 Buy, 16 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 14 | Down: 11 | New: 8
Trade AAP Now!
Join SI Premium – FREE

Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.

Morgan Stanley reiterates an Overweight rating and $180.00 price target on Advance Auto Parts (NYSE: AAP) following the company's 2Q earnings report. While Q2 was a poor quarter, Morgan Stanley believes that it is too early to discredit the turnaround story.

Analyst Simeon Gutman commented, "Comps of -4.1% were “in-line” with the midpoint of guidance (-5% to -3%) and while slightly better than consensus (-4.5%), the bulls were hoping comps would be a shade better. Margin deleverage was also worse than expected with GM down 110bps and SG&A up ~15 bps. For the stock to have held onto its recent gains, the quarter needed to demonstrate sequential top-line progress with at least in-line margins. Q2 was a setback in this regard."

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

Shares of Advance Auto Parts closed at $158.05 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments

Related Entities

Morgan Stanley, Earnings

Add Your Comment