Wedbush raised the firm’s price target on AutoZone to $3,400 from $2,950 and keeps an Outperform rating on the shares. The firm notes AutoZone reported Q2 comps that were modestly below expectations but margins that were well above expectations, driving EPS up 17% year-over-year vs. consensus’ +6% year-over-year forecast. While Wedbush was disappointed in decelerating Commercial segment sales growth in the quarter, the firm still expects better year-over-year growth in the back half of the fiscal year as initiatives take hold, new programs mature, comparisons ease and weather normalizes. At the same time, Wedbush views the DIY business as resilient and the double-digit comp trajectory of the International business appears sustainable.
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Read More on AZO:
- AZO Earnings: AutoZone Rallies on Robust Q2 Momentum
- AutoZone 2nd Quarter Total Company Same Store Sales Increase 1.5%; Domestic Same Store Sales Increase 0.3%; EPS Increases to $28.89
- AutoZone reports Q2 EPS $28.89, consensus $26.28
- Notable companies reporting before tomorrow’s open
- AutoZone price target lowered to $2,779 from $2,800 at Barclays
