Autozone (AZO): Mixed Quarter Offset By Low Valuation - William Blair

William Blair analyst, Daniel Hofkin, reiterated his Market Perform rating on shares of AutoZone (NYSE: AZO) after fiscal 2018 fourth-quarter (16 weeks ended August 25) adjusted EPS exceeded consensus expectations, as gross margin strength and a lower than-
expected tax rate more than offset a sales shortfall.

The analyst stated "We have increased our fiscal 2019 EPS estimate by $1.00, to $57.50 (15% growth, including the full-year benefit from tax reform and an extra selling week). While AutoZone's current valuation (at about 12-13 times our fiscal 2019 EPS estimate) is not at all demanding, there is no change to our Market Perform rating, which reflects the company's already group leading margins and ROIC and our expectation that the company will have to continue to invest more aggressively to further penetrate the commercial segment over the long term."

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 $732.76 yesterday.

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