UBS Maintains a 'Buy' on Advance Auto Parts (AAP); Expecting a Smoother Ride
AAP Hot Sheet
Rating Summary:2 Buy, 14 Hold, 0 Sell
Rating Trend:
Down
Today's Overall Ratings:
Up: 18 | Down: 7 | New: 23
UBS maintains a 'Buy' on Advance Auto Parts (NYSE: AAP) price target raised from $74 to $90.
UBS analyst said, "Our thesis is that the company is primed for more consistent execution following several years of changes under the current leadership team. As AAP develops a steadier track record of performance, it will provide the basis to believe that a 12% LT op. margin is achievable (especially vs. O'Reilly's (Nasdaq: ORLY) 14.6% margin and AutoZone's (NYSE: AZO) of 18.5%.) This credibility will enable its valuation to close the gap with its peer group. AAP’s PE currently stands at a 20% discount to its peers, which ignores the potential of its relative performance, in our view."
UBS slightly raises FY11 EPS estimate from $4.98 to $5.00 and FY12 from $5.67 to $5.75.
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 $75.35 yesterday, with a 52 week range of $49.50-$76.49.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
UBS analyst said, "Our thesis is that the company is primed for more consistent execution following several years of changes under the current leadership team. As AAP develops a steadier track record of performance, it will provide the basis to believe that a 12% LT op. margin is achievable (especially vs. O'Reilly's (Nasdaq: ORLY) 14.6% margin and AutoZone's (NYSE: AZO) of 18.5%.) This credibility will enable its valuation to close the gap with its peer group. AAP’s PE currently stands at a 20% discount to its peers, which ignores the potential of its relative performance, in our view."
UBS slightly raises FY11 EPS estimate from $4.98 to $5.00 and FY12 from $5.67 to $5.75.
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 $75.35 yesterday, with a 52 week range of $49.50-$76.49.
Discover Wall Street's best ratings calls with the pros - Ratings Insider Elite. Free Trial!
You May Also Be Interested In
- Nomura Securities Reiterates a 'Buy' on AutoZone (AZO); Tweaking Estimates After Q3 Results
- Auriga Reiterates a 'Buy' on DSW Inc. (DSW); Raising Estimates and PT After Great Q1
- Goldman Sachs Boosts Target on Williams-Sonoma (WSM) On Signs of Stabilization
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
UBSSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
