Evercore ISI analyst Greg Melich reiterated an In Line rating and $150.00 price target on Genuine Parts (NYSE: GPC)

The analyst comments "We are initiating a negative tactical trading call or TAP on GPC ahead of its earnings on 7/23. We see near term downside toward $130 (down high single digits), with potential for a 2Q EPS miss and lower its full year topline (prior +3-5% growth outlook could be reduced to +1-3%)/EPS guide ($9.80-$9.95 prior to a range around the low end of prior guide) as a result. We reduced our topline outlook for both GPC’s Auto and Industrial segments for 2Q and 2H24, with EPS reduced 1.5% as a result to $9.75. Our concern is that GPC’s Automotive business is likely not immune to broader consumer slowing trends/a cold-wet start to 2Q, and that U.S. comps likely turned negative in 2Q vs. the +0.5% growth posted in 1Q. We are cutting our 2Q industrial organic growth outlook from +2.5% to -0.7% to reflect ongoing sluggish Industrial Production trends, field work from David Raso (EVR Industrial & Machinery Analyst), and early July earnings from competitor MSM which experienced a decline in revenue and margin pressure. Heading into the upcoming election, our concern is that GPC will likely want to reduce its topline guide for both its Auto and Industrial Division, which would lead to de-leverage on SG&A."

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

Shares of Genuine Parts closed at $140.26 yesterday.