Wedbush Raises Price Target on Advance Auto Parts (AAP) Following Mixed 2Q
- Apple (AAPL) Tops Q4 EPS by 2c; Issues Solid Outlook
- Wall Street slips on earnings; Apple falls late after results
- Chipotle Mexican Grill (CMG) Posts Q3 EPS of $0.27; Comps Miss Views; Additional Stock Buyback Approved
- Pandora (P) Misses Q3 EPS by 1c, Q4 Revenue Guidance Falls Short
- After-Hours Movers 10/25: (OGXI) (AKAM) (VRTX) Higher; (EW) (NUVA) (CMG) (AAPL) Lower (more...)
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
Wedbush reiterated an Outperform rating on Advance Auto Parts (NYSE: AAP), and raised the price target to $175.00 (from $160.00), following the company's 2Q earnings report.
Analyst Seth Basham commented, "AAP’s 2Q16 results beat top line expectations (comps -4.1% vs. our/consensus -4.5%), but missed bottom line expectations due primarily to elevated supply chain costs, with gross margins decreasing 110 bps y/y (vs. 60 bps decline in 1Q16) to 44.8% vs. our/consensus 45.6%. We believe comp and margin trends have and will continue to improve from 2Q, but the rate of improvement may be limited in the near term. A return to positive comps is likely in 2017, but the company has not yet committed to an improvement in operating margins next year as it contemplates investments to stabilize operations and drive top line growth. Nonetheless, we continue to see substantial long-term opportunity for both top- and bottom-line growth, and we expect these opportunities to be well-articulated by new CEO Tom Greco with the delivery of a strategic plan this fall (likely November); that leads us to increase our price target to $175 despite reducing near-term forecasts."
Shares of Advance Auto Parts closed at $160.40 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: CommVault Systems (CVLT) PT to $62 at Mizuho Following Strong Q2
- UBS Cuts Price Target on V.F. Corp. (VFC) to $59; Reiterates Buy
- UPDATE: UBS Upgrades Swift Transportation (SWFT) to Buy
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Sign 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!