AutoZone (AZO) PT Raised to $3,600 at Mizuho

Mizuho analyst David Bellinger raised the price target on AutoZone (NYSE: AZO) to $3,600.00 (from $3,550.00) while maintaining a Neutral rating.

The analyst commented: "AutoZone (AZO) shares notched down yesterday on fiscal Q2 results. While operating expense growth was held in check, weakening comp sales growth disappointed and surprised many to the downside. Yes, weather did play a role with the final two weeks of the quarter weighing disproportionately on commercial sales growth. However, same SKU inflation hasn't been the sticky driver the market had anticipated. We continue to believe investors are seeking an even greater and sustained level of comp sales momentum - given expectations for increasing SG&A growth and what represents a new investment cycle for AZO. Management indicated to us that SG&A growth should track around +9% year-on-year in fiscal Q3, and less than that in fiscal Q4. We stand by our downgrade to Neutral at the start of the year. Adjusting estimates and PT modestly."

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