AutoZone (AZO) PT Raised to $1,750 at Wells Fargo Despite Nosebleed High Comps

Wells Fargo analyst Zachary Fadem raised the price target on AutoZone (NYSE: AZO) to $1,750.00 (from $1,700.00) on the belief that the 7% drop in August offers a nice buying opportunity into earnings on 9/21. The FQ4 represents AZO's largest seasonal quarter and most difficult comp of the year, up +21.8%. That said , positive comps are likely in the coming quarters and better-than-feared GM are also likely considering pricing appears to be up +2.6% vs.April.

The analyst maintained an Overweight rating, stating "we are raising FQ4 comps by +400bps to flat y/y, which is above consensus (-1.4%) and slightly below modestly positive buyside expectations.We see better than initially expected demand and accelerating inflation as key drivers,coupled with a solid summer driving season, elevated used car prices, and DIFM share gains despite waning stimulus benefits and potentially variable weather. While NT comp deceleration appears inevitable coming off four straight quarters of +DD% results, we see reasonable expectations in the quarters ahead, with likely FQ1 upside".

You May Also Be Interested In

• JD.com (JD) Reiterated at Buy by Benchmark Amid Earnings Recovery
• Deere (DE) PT Lowered to $570 at JPMorgan Ahead of Earnings
• Fox upgraded to overweight as Roku deal, ad strength lift outlook