Advance Auto Parts (AAP) Likely to Print a Strong Quarter - UBS

UBS analyst Michael Lasser reiterated a Buy rating and $230.00 price target on Advance Auto Parts (NYSE: AAP) on the belief that management left room for upside and it sustained its recent momentum.

The analyst stated "On the back of stimulus and cooperative weather, the aftermarket is experiencing outsized demand. For 1Q, we model SSS of 23.4% (cons. of 21.8%; guidance 22-24%). Notably, our est. assumes DIY continues to outperform (28% DIY SSS & 20% DIFM SSS). This dynamic was evident in ORLY's results, as it reported 24.8% SSS in its 1Q, w. 32% DIY growth and 16% DIFM. Further, NAPA reported comp growth of 7% in 1Q (vs -6% in 4Q) and MNRO 9.4% SSS in C'1Q (1.1% ex-tires). We think AAP continues to take share, as our est. implies 930 bps of outperformance vs the census category."

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 $190.65 yesterday.

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