In a report released yesterday, Zachary Fadem from Wells Fargo maintained a Hold rating on Advance Auto Parts (AAP – Research Report), with a price target of $55.00.
Zachary Fadem has given his Hold rating due to a combination of factors concerning Advance Auto Parts’ performance and outlook. Despite the company engaging in changes and asset sales that could potentially be seen as positive, the underlying fundamentals remain a cause for concern. The recent quarterly results fell short of expectations, with key metrics such as comparable store sales, EBIT, and EPS underperforming. Furthermore, the company’s guidance for the upcoming fiscal year is below the consensus, indicating that the business may continue to face challenges ahead.
Additionally, Fadem notes that while Advance Auto Parts is making efforts to improve, such as SG&A reductions and supply chain consolidations, there are still significant hurdles to overcome. The company is losing market share and has structural disadvantages that may not be quickly resolved. With ongoing execution and financial risks, it’s clear that while the company is taking steps toward a turnaround, the analyst believes that more evidence of sustainable improvement is needed before changing the investment stance. Hence, a Hold rating reflects a cautious approach to the stock, acknowledging both the potential for change and the existing fundamental weaknesses.
In another report released yesterday, TD Cowen also maintained a Hold rating on the stock with a $60.00 price target.
AAP’s price has also changed slightly for the past six months – from $65.630 to $66.420, which is a 1.20% increase.
See today’s best-performing stocks on TipRanks >>
TipRanks tracks over 100,000 company insiders, identifying the select few who excel in timing their transactions. By upgrading to TipRanks Premium, you will gain access to this exclusive data and discover crucial insights to guide your investment decisions. Begin your TipRanks Premium journey today.
Advance Auto Parts (AAP) Company Description:
Advance Auto Parts, Inc. engages in the supply and distribution of aftermarket automotive products for both professional installers and do-it-yourself customers. It operates through the following segments: Northern Division, Southern Division, Carquest Canada, Independents and Worldpac. Advance Auto Parts offers replacement parts, performance parts, accessories, oil and fluids, engine parts, brakes, batteries, accessories, and tools and garage. The company was founded by Arthur Taubman in 1929 and is headquartered in Raleigh, NC.
Read More on AAP:
