UBS Maintains a 'Buy' on O'Reilly Automotive (ORLY); Expecting Solid Results

UBS maintains a 'Buy' on O'Reilly Automotive (NASDAQ: ORLY) price target raised from $106 to $108.

Analyst, Michael Lasser, said, "The 1Q’12 results will likely show that ORLY’s 4Q’11 sub-par comp was a one-off event due in large part to the warm weather. We think O’Reilly’s same-store sales accelerated to the 5% - 6% range during 1Q’12 (from 3.3% last quarter). Recent commentary from Genuine Parts (NYSE: GPC) indicates that the mild weather during 1Q benefited the DIY business more than the DIFM business. This substantiates why ORLY under-performed last quarter, but we think this was less of a factor this quarter."

Lasser's other two points include: 1) ORLY should still get a life from CSK acquisition; and 2) More 'Pure' margin profile than peers Advanced Auto (NYSE: AAP) and AutoZone (NYSE: AZO). FY12 EPS estimate raised $0.05 to $4.56 and FY13 by $0.06 to $5.20.

For an analyst ratings summary and ratings history on O'Reilly Automotive click here. For more ratings news on O'Reilly Automotive click here.

Shares of O'Reilly Automotive closed at $95.35 yesterday.

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