UBS Maintains a 'Neutral' on Advance Auto Parts (AAP); Q2 Preview: Feeling the Constraints
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Price: $56.96 +0.42%
Rating Summary:
9 Buy, 30 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 16 | New: 37
Rating Summary:
9 Buy, 30 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 7 | Down: 16 | New: 37
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UBS maintains a 'Neutral' on Advance Auto Parts (NYSE: AAP), lowered from $60 to $55.
UBS analyst says, "We think a combination of difficult DIY trends and gross margin pressure restrained AAP’s 2Q’11 results. We are lowering our 2Q EPS est to $1.32 (vs. consensus est. of $1.38). Our forecast assumes a -2% DIY comp (offset by a 10% DIFM comp), a 10 bps GM decline, and 20 bps of SG&A deleverage. Our FY’11 EPS est. goes to $4.45 (from $4.55) and our FY’12 est. falls to $4.85 (from $4.96)."
"We think the risk-reward for AAP’s shares is balanced at the current level. AAP’s strong FCF characteristics should provide some support for the stock, especially given the chance that its private market value could exceed its public valuation."
For more ratings news on Advance Auto Parts click here and for the rating history of Advance Auto Parts click here.
Shares of Advance Auto Parts closed at $50.04 yesterday.
UBS analyst says, "We think a combination of difficult DIY trends and gross margin pressure restrained AAP’s 2Q’11 results. We are lowering our 2Q EPS est to $1.32 (vs. consensus est. of $1.38). Our forecast assumes a -2% DIY comp (offset by a 10% DIFM comp), a 10 bps GM decline, and 20 bps of SG&A deleverage. Our FY’11 EPS est. goes to $4.45 (from $4.55) and our FY’12 est. falls to $4.85 (from $4.96)."
"We think the risk-reward for AAP’s shares is balanced at the current level. AAP’s strong FCF characteristics should provide some support for the stock, especially given the chance that its private market value could exceed its public valuation."
For more ratings news on Advance Auto Parts click here and for the rating history of Advance Auto Parts click here.
Shares of Advance Auto Parts closed at $50.04 yesterday.
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