Advance Auto Parts’ (AAP) Buy Rating Reiterated at Evercore ISI

Evercore ISI restated their buy rating on shares of Advance Auto Parts (NYSE:AAP) in a research note released on Tuesday, AnalystRatings.com reports.

“We are trimming 2H19 EPS -$0.10/-3% ahead of 2Q results on Tuesday, as we incorporate recent labor inflation that has been widespread across retail. After choppy 2Q results are released, the setup for AAP starts to improve. Weather should normalize, and compares begin to ease on a 3 year basis next quarter, with 1Q20 comps more favorable still. Critically company specific comp and margin drivers ought to gain traction on a 12-18 month view, just as a rising 4-12 year old vehicle sweet spot helps provide a comp tailwind for AAP and peers. Tariffs remain a risk for all of retail, yet with 25% tariffs already in place on 90%+ of the auto parts imported from China today, AAP and peers are relatively well positioned on this front. 2Q expectations muted given read across from competitors. 2H19 guidance reduction likely.”,” Evercore ISI’s analyst commented.

Several other research firms also recently weighed in on AAP. Zacks Investment Research upgraded Advance Auto Parts from a hold rating to a buy rating and set a $161.00 price target for the company in a research note on Wednesday, July 31st. Wells Fargo & Co restated a hold rating and issued a $175.00 price target on shares of Advance Auto Parts in a research note on Wednesday, May 22nd. William Blair restated an outperform rating on shares of Advance Auto Parts in a research note on Wednesday, May 22nd. Goldman Sachs Group started coverage on Advance Auto Parts in a research note on Thursday, July 11th. They issued a sell rating and a $151.00 price target for the company. Finally, Wedbush restated an outperform rating and issued a $200.00 price target on shares of Advance Auto Parts in a research note on Thursday, July 11th. One analyst has rated the stock with a sell rating, five have assigned a hold rating and fourteen have given a buy rating to the company’s stock. The stock has an average rating of Buy and a consensus target price of $183.38.

AAP stock opened at $136.59 on Tuesday. Advance Auto Parts has a 1-year low of $130.09 and a 1-year high of $186.15. The company has a debt-to-equity ratio of 0.76, a current ratio of 1.36 and a quick ratio of 0.31. The company has a market capitalization of $9.74 billion, a price-to-earnings ratio of 18.15, a PEG ratio of 1.47 and a beta of 0.87. The business has a 50 day simple moving average of $152.35 and a two-hundred day simple moving average of $159.88.

Advance Auto Parts (NYSE:AAP) last posted its quarterly earnings results on Tuesday, August 13th. The company reported $2.00 earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $2.22 by ($0.22). Advance Auto Parts had a return on equity of 15.16% and a net margin of 4.52%. The business had revenue of $2.33 billion during the quarter, compared to the consensus estimate of $2.36 billion. During the same quarter in the previous year, the company earned $1.97 earnings per share. The company’s revenue for the quarter was up .2% compared to the same quarter last year. Sell-side analysts anticipate that Advance Auto Parts will post 7.98 EPS for the current fiscal year.

Several institutional investors and hedge funds have recently modified their holdings of the company. Vanguard Group Inc. raised its holdings in shares of Advance Auto Parts by 0.8% during the 2nd quarter. Vanguard Group Inc. now owns 7,477,868 shares of the company’s stock worth $1,152,638,000 after acquiring an additional 56,160 shares in the last quarter. BlackRock Inc. raised its holdings in Advance Auto Parts by 7.2% during the 2nd quarter. BlackRock Inc. now owns 5,326,148 shares of the company’s stock valued at $820,972,000 after buying an additional 358,324 shares during the period. Barrow Hanley Mewhinney & Strauss LLC raised its holdings in Advance Auto Parts by 16.9% during the 2nd quarter. Barrow Hanley Mewhinney & Strauss LLC now owns 4,379,461 shares of the company’s stock valued at $675,051,000 after buying an additional 634,441 shares during the period. JPMorgan Chase & Co. raised its holdings in Advance Auto Parts by 125.1% during the 2nd quarter. JPMorgan Chase & Co. now owns 2,721,715 shares of the company’s stock valued at $412,910,000 after buying an additional 1,512,581 shares during the period. Finally, American Century Companies Inc. raised its holdings in Advance Auto Parts by 26.7% during the 1st quarter. American Century Companies Inc. now owns 1,454,058 shares of the company’s stock valued at $247,961,000 after buying an additional 306,824 shares during the period. 99.11% of the stock is currently owned by institutional investors and hedge funds.

Advance Auto Parts Company Profile

Advance Auto Parts, Inc provides automotive replacement parts, accessories, batteries, and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The company offers battery accessories, belts and hoses, brakes and brake pads, chassis and climate control parts, clutches and drive shafts, engines and engine parts, exhaust systems and parts, hub assemblies, ignition components and wires, radiators and cooling parts, starters and alternators, and steering and alignment parts.

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Analyst Recommendations for Advance Auto Parts (NYSE:AAP)

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