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CFRA Upgrades O'Reilly Automotive (ORLY) to Strong Buy

October 26, 2023 8:08 AM EDT
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Price: $1,058.02 +0.30%

Rating Summary:
    20 Buy, 18 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 20 | Down: 26 | New: 20
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CFRA analyst Garrett Nelson upgraded O'Reilly Automotive (NASDAQ: ORLY) from Buy to Strong Buy with a price target of $1,100.00.

The analyst commented, "We maintain a 12-month target of $1,100, based on a '25 P/E of 23.5x, a slight premium to the stock's 10-year mean forward P/E of 22.4x. We raise our EPS estimates to $38.20 from $37.55 for '23, to $43.45 from $43.20 for '24, and introduce '25 at $46.85. ORLY posts Q3 EPS of $10.72 vs. $9.17 (+17%), ahead of the $10.42 consensus. The beat was driven by a stronger-than-anticipated top line and margins, as revenue rose 11% to $4.20B ($120M ahead of consensus) on an 8.7% increase in comp store sales (290 bps above consensus). Gross margin expanded by 50 bps to 51.4% (30 bps ahead of consensus). ORLY raised 2023 revenue and EPS guidance to $15.7B-$15.8B and $37.80-$38.30 from $15.4B-$15.7B and $37.05-$37.55, respectively (current consensus = $15.68B and $37.89). The average U.S. vehicle age continues to rise (now at 12.5 years), and consumer affordability in relation to new vehicles should continue to support aftermarket parts demand. We raise our opinion to Strong Buy following ORLY's recent selloff."

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 $874.92 yesterday.



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