UBS Maintains a 'Neutral' on Advance Auto Parts; Expect to See AAP Advance in 3Q’11

UBS maintains a 'Neutral' on Advance Auto Parts (NYSE: AAP) price target raised from $64 to $69.

UBS analyst says, "We think that AAP generated strong sales growth in 3Q’11 as industry conditions were generally favourable. While the company probably saw further gross margin pressure, this has been well telegraphed and should not come as a surprise. Similarly, AAP’s SG&A margin probably felt the impact of incentive compensation returning to the P&L, but the company was likely still able to generate leverage on its sales increase and expense containment initiatives. These factors, along with aggressive share repurchases, should drive EPS ests higher."

UBS bumps FY11 EPS estimate from $4.61 to $4.65 and FY12 from $5.10 to $5.14.

For an analyst ratings summary and ratings history on Advance Auto Parts click here. For more ratings news on Advance Auto Parts click here.

Shares of Advance Auto Parts closed at $66.45 yesterday.

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