Nomura Securities Reiterates a 'Buy' on AutoZone (AZO); Raising Estimates

Nomura Securities reiterates a 'Buy' on AutoZone (NYSE: AZO) price target of $363.00.

Nomura analyst, Aram Rubinson, said, "AutoZone will report its fiscal Q1 results on Tuesday morning before the open. We are edging up our comp estimate to +3% (from +2%) and our earnings estimate to $4.57 (from $4.40). The Street is looking for $4.44. We look to GP comps, a measure of GP dollar growth from existing (rather than new) stores. While GP comps have been flat year-to-date at AAP, they have improved steadily and predictably at AZO – from 0.7% in F2007 to 7.5% in F2011. That suggests AZO is able to stoke demand without pressuring margin. AZO shares have underperformed relative to O'Reilly (Nasdaq: ORLY) and even Advanced Auto (NYSE: AAP) over recent weeks."

For an analyst ratings summary and ratings history on AutoZone click here. For more ratings news on AutoZone click here.

Shares of AutoZone closed at $330.22 yesterday.

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