Nomura Securities on Autos and Auto Parts: Trimming Estimates

June 27, 2012 8:52 AM EDT Send to a Friend
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Nomura Securities on Autos and Auto Parts: Trimming Estimates

Analyst, Aram Rubinson, said, "Trim comp estimates by 1-2% across the board, including at Buy-rated AutoZone (NYSE: AZO). Yesterday evening saw a rare guide-down from O'Reilly (Nasdaq: ORLY). The company is now expecting Q2 comps of 2-2.5% instead of 3- 5%. It expects to make the low end of its EPS guidance of $1.13-$1.17, but that will be overshadowed by the sales overhang. There is little doubt that a mild winter is contributing to tough industry dynamics. While we are trimming our estimates and target on AZO, we are ahead of consensus. It still merits a Buy rating given its 20% EPS growth and a 7% free cash yield."

AutoZone (NYSE: AZO) (Buy) F12E/F13E EPS from $23.72/$28.84 to $23.59/$28.58; PT from $445 to $415

O'Reilly (Nasdaq: ORLY) (Neutral) F12E/F13E EPS from $4.70/$5.50 to $4.50/$5.20; PT from $95 to $88

Advanced Auto (NYSE: AAP) (Neutral) F12E/F13E from $5.64/$6.23 to $5.32/$5.90; PT from $85 to $72


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