UBS Reiterates Buy on AutoZone (AZO)

November 30, 2016 9:09 AM EST
Get Alerts AZO Hot Sheet
Price: $770.39 +0.06%

Rating Summary:
    14 Buy, 14 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 29 | Down: 30 | New: 23
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UBS reiterated a Buy rating and $825.00 price target on AutoZone (NYSE: AZO). The market is likely to interpret any potential sluggishness to be a result of a zero-sum game either because AAP is donating less share or because AMZN is making its presence known.

Analyst Michael Lasser commented, "While we think AZO’s comp accelerated a touch from last quarter, the real improvement should come in the next few quarters. AutoZone’s F1Q coincided with a period of mixed reads in the industry. Plus, it faced a challenging 3.5% comparison. Further, YoY fuel price declines have moderated in the last few months. These factors probably mean that the progress from its inventory initiatives, labor investments, & new store prototype implementation have only been modest. Thus, we believe a 1.8% comp is a realistic expectation for AZO in 1Q (in line with the consensus). This helps drive our 1Q'17 $9.35 EPS estimate (also in line with the consensus). While AZO’s shares have moved up in recent weeks, we still think they offer a lot of long-term potential."

For an analyst ratings summary and ratings history on AutoZone click here. For more ratings news on AutoZone click here.

Shares of AutoZone closed at $790.24 yesterday.

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