Wedbush Cuts Price Target on Genuine Parts (GPC) to $95 Following 3Q
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Wedbush maintained a Neutral rating on Genuine Parts (NYSE: GPC), and cut the price target to $95.00 (from $98.00), following the company's 3Q earnings report. GPC noted that the comp performance gap between weather-impacted regions including the Northeast and Central remained in same 400 bps range noted in 2Q, but that gap narrowed significantly in September to help improve GPC’s comp trend by an estimated 200-300 bps.
Analyst Seth Basham commented, "GPC missed 3Q expectations on the top and bottom line and in each of its operating segments and reduced FY16 guidance. With sales trends improving in September in Auto (slightly positive comps vs. –LSD comps in July and August) and Industrial, as well as easier comparisons in 4Q vs. 3Q of 300 bps in Auto comps and 400 bps in Industrial organic sales growth, there is reason for cautious optimism for better sales growth in 4Q. We believe that is adequately reflected in updated guidance, suggesting balanced risk/reward for GPC shares near-term. We reduce our estimates and price target and remain NEUTRAL on GPC."
Shares of Genuine Parts closed at $92.12 yesterday.
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