UBS Reiterates Buy on AutoZone (AZO) Following 4Q Report

September 23, 2016 9:14 AM EDT
Get Alerts AZO Hot Sheet
Price: $772.61 -1.24%

Rating Summary:
    14 Buy, 14 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 11 | Down: 20 | New: 54
Trade AZO Now!
Join SI Premium – FREE

Get access to the best calls on Wall Street with's Ratings Insider Elite. Get your Free Trial here.

UBS reiterated a Buy rating and $825.00 price target on AutoZone (NYSE: AZO) following the company's 4Q earnings report. AZO was able to generate its 12th consecutive quarter of margin expansion, despite posting a 1% comp and seeing continued headwinds from its delivery and inventory initiatives.

Analyst Michael Lasser commented, "AZO's 4Q served as a reminder as to just how long an aftermarket retailer can be impacted from a milder than normal winter. While its overall comp came in at 1%, we estimate its SSS declined ~-2% in the NE, Midwest, & Mid Atlantic regions and up ~2% in the rest of the country. Encouragingly, trends improved throughout the quarter, setting the stage for an acceleration in the quarters ahead even as AZO faces tougher comparisons. It should benefit from the hot summer transitioning into more seasonal cold weather. Further, this should be complemented by some contribution from its initiatives (AZO plans to have more frequent deliveries at ~55% of its store base by the end of FY'17 vs. ~35% today). This puts it in good position to maintain its double-digit EPS growth, which looks appealing given its reasonable multiple of 16x."

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 $748.23 yesterday.

Serious News for Serious Traders! Try Premium Free!

You May Also Be Interested In

Related Categories

Analyst Comments

Related Entities

UBS, Earnings

Add Your Comment