UBS Maintains a 'Buy' on Advance Auto Parts (AAP); Q1 Preview: Prepared For April Slowdown?

May 15, 2012 11:07 AM EDT Send to a Friend
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Price: $159.85 -0.55%

Rating Summary:
    10 Buy, 13 Hold, 0 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 14 | Down: 28 | New: 51
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UBS maintains a 'Buy' on Advance Auto Parts (NYSE: AAP) price target lowered from $102 to $100.

Analyst, Michael Lasser, said, "While we still like AAP’s investment story, we think the 1Q’12 results will be uninspiring as recent industry trends have slowed a bit due to a pull forward in demand. There is a chance that AAP was caught off guard by this, resulting in less expense leverage than we previously anticipated. We are maintaining our 3.7% comp est. for the quarter, but are assuming 100 bps of SG&A leverage (vs. 130 bps previously), which drives our updated EPS est of $1.74 (vs. the consensus of $1.81). With the shares at 12x ‘13E, we think the risk is discounted in the stock."

UBS moves FY12 EPS estimate from $5.94 to $5.88 and FY13 from $6.74 to $6.68.
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 $82.34 yesterday.


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