Advance Auto Parts (AAP) PT Raised to $200 at UBS

UBS analyst Michael Lasser reiterated a Buy rating and raised his price target on Advance Auto Parts (NYSE: AAP) to $200.00 (from $175.00).

Lasser commented, "We think AAP probably was able to gain some momentum during 2Q'15. We model a 1.2% comp, which is 20 bps ahead of the consensus 1.0%. Our estimate is driven by 2.5% DIFM comp growth and a -0.5% DIY comp, and reflects a slight sequential acceleration from 1Q'15 in both segments. Further, it denotes a sequential acceleration on a 2-year comp stack to 3.8% (from 3.2%). Most likely, AAP benefitted from the favorable industry conditions over the past few months, along with less disruption from the merger integration. Also, it was probably more insulated from the wet weather in
the South Central region, with the least concentration in this geography of the "Big 3." These factors drive our $2.30 EPS estimate for 2Q, which is $0.05 ahead of consensus. Expectations were low in 1Q and the stock rallied. The bar is higher this period, but we think the name can still work quite well as it has ample room to gain in front of it."

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 $175.10 yesterday.

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