UBS Remains Bullish on O'Reilly Automotive (ORLY) Following an Analyst Meeting

UBS reiterated a Buy rating and $275.00 on O'Reilly Automotive (NASDAQ: ORLY), following an analyst meeting. Analyst Michael Lasser came away from the meeting believing that the company should continue to lead the sector for some time. ORLY thinks it can ultimately run 6,000 - 6,500 stores in the US. This should enable it to add ~200 locations per year for the next decade.

Lasser commented, "While there wasn't anything revolutionary offered at ORLY's analyst meeting, there were enough tidbits to support the view that the company should continue to lead the sector for some time. It's advantage comes from its deep culture of service that emphasizes promotion and development from within, along with its extensive supply chain that features 26 regional DCs that each stock 176k SKUs. These factors are allowing it to grab share and grow its SSS at 2-3x the other large players. Management outlined its belief that it can sustain 3-5% comp growth for the foreseeable future and we think that it's quite credible. With all that being said, the biggest risk we see from here is the pace of appreciation for the shares slows over the long term. However, the direction should still be higher."

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 $247.64 yesterday.

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