Wedbush downgraded Genuine Parts (NYSE: GPC) from Outperform to Neutral with a price target of $91.00 (from $93.00).

Analyst Seth Basham commented, "GPC delivered a low-quality beat in 4Q15 and issued 2016 guidance shy of consensus expectations. That set of facts was enough to push GPC shares up 2.0% yesterday in a very strong retail tape. We look favorably on the company’s strong cost control and cash flow in 4Q, and note signs of improving sales trends in 1Q in Auto, its largest business segment. We also like the company’s stepped up acquisition activity that should be accretive (and isn’t fully factored into 2016 guidance), strong balance sheet, higher share repurchases and a dividend increase to a level implicitly above the normal payout range. However, growing macro concerns, continued FX headwinds and rising capital investments will likely make 2016 challenging, and guidance for +LSD EPS growth appears less conservative than normal, adding risk. In addition, we see little room for valuation multiple expansion with shares trading above historical average multiples. Consequently, we reduce our estimates and downgrade our rating to NEUTRAL from OUTPERFORM."

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Shares of Genuine Parts closed at $89.61 yesterday.