Advance Auto Parts (AAP) Should Talk Down Guidance - UBS

UBS analyst, Michael Lasser, is looking forward to the first time that Advance Auto Parts (NYSE: AAP) new CEO, Tom Greco, will address the investment community having only been on the job about 6 weeks. Given this short tenure, it's not realistic to expect him to present a full-fledged game plan. But, it's logical that he could back off the co's prior goal of achieving a 12% op. margin this year. It would be prudent to reserve the right to invest in the near-term as he puts a vision in place to help AAP achieve its long-run potential.

No change to Buy rating or $175 PT on 18x CY’17E EPS.

AAP reports results on May 19.

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 $150.52 yesterday.

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