AutoZone (AZO) PT Raised to $4,200 at Raymond James

Raymond James analyst Bobby Griffin raised the price target on AutoZone (NYSE: AZO) to $4,200.00 (from $4,000.00) while maintaining a Strong Buy rating.

The analyst comments "We reaffirm our Strong Buy rating on AZO and raise our price target to $4,200 from $4,000 following F3Q25 results. Despite modest downside to our FY25/FY26 EPS (on EBIT%), we remain constructive as sales momentum is accelerating and strategic investments are beginning to inflect. Commercial (DIFM) continues to accelerate via share gains, DIY is showing early signs of recovery, and the mega hub expansion remains on track to drive broader network productivity. While near-term margin pressures from shrink, insurance, and DC ramp-up weighed on EBIT, we view these as transitory — with easier y/y compares and FX headwinds fading into FY26 (F4Q will show seq. improvements). All in, we remain encouraged by AZO’s strong commercial momentum and long-term growth drivers. The Mega-Hub expansion target remains a key pillar, with management reaffirming its plan to reach 300 locations — enhancing both DIY and DIFM availability. To that point, DIFM sales picked up further during the quarter (transaction base growth), supported by improved inventory placement and faster delivery times. In addition, DIY turned positive (up ~3% y/y), and AZO remains well-positioned for a rebound as macro conditions improve; with potential upside from reaccelerated inflation and tariff impact (avg. ticket lift). International growth remains a bright spot, with ~100 new stores planned this year and HSD constant currency comp growth (though forex remains a near-term drag; should be abating some moving forward). All in, AZO remains on track with our investment thesis with its structural growth levers, disciplined execution, and shareholder-friendly capital allocation."

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