O'Reilly Automotive (ORLY) PT Raised to $1,416 at RBC, Citing 'Positive Bias Heading into the ORLY Print'

RBC Capital analyst Steven Shemesh raised the price target on O'Reilly Automotive (NASDAQ: ORLY) to $1,416.00 (from $1,286.00) while maintaining an Outperform rating.

The analyst commented: "We have a positive bias heading into the ORLY print on 2/5. We've tweaked estimates and are raising our PT to $1,416 (based on ~28x our revised CY'26 EPS estimate of $50.56). After 2 guide downs in CY'24, expectations seem reasonable making for a good setup into 2025, which is poised to see an acceleration in EPS growth as the company pares back on reinvestment spend. For 4Q, we think a +2.5-3.0% comp is enough and are modeling EPS of $9.88 (~2% ahead of cons. $9.74) driven by slightly more optimistic top-line assumptions and a lower tax rate (due to tolling of certain tax periods). We expect initial FY'25 guidance to call for comp +2-4% (RBCe +3.5%) and EPS growth in a range of +6-8% excl. share repurchases (RBCe +8% / +10% incl. share repurchases), which we think most will look through given mgmt's track record of over-delivery."

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