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Investing.com - Mizuho (NYSE:MFG) raised its price target on Advance Auto Parts (NYSE:AAP) to $44.00 from $38.00 on Thursday, while maintaining a Neutral rating on the automotive parts retailer. The company, currently trading at $49.01 with a market capitalization of $2.93 billion, has shown a strong return over the last three months according to InvestingPro data.
The price target adjustment follows Advance Auto Parts’ better-than-anticipated first-quarter financial results, according to Mizuho. The firm cited the strong quarterly performance as the basis for revising its earnings estimates upward.
Mizuho increased its fiscal year 2025 earnings estimate for Advance Auto Parts to $2.34 per share from $2.18 previously. This updated projection falls within the company’s own guidance range of $1.50 to $2.50 per share.
The research firm also raised its fiscal year 2026 earnings estimate to $4.00 per share from the previous estimate of $3.75 per share, reflecting improved longer-term outlook for the company.
The new $44 price target represents a valuation of 11 times Mizuho’s updated FY26 earnings estimate, up from approximately 10 times previously, which the firm indicated reflects "ongoing challenges with the company’s turnaround, and a level similar to other challenged retailers."
In other recent news, Advance Auto Parts has been the subject of several analyst updates and assessments. Redburn-Atlantic upgraded the company’s stock rating from sell to neutral, raising the price target to $45, citing potential near-term gains despite ongoing structural challenges. DA Davidson also adjusted their price target to $47 while maintaining a neutral stance, acknowledging early signs of a successful turnaround but noting market caution due to the company’s mixed historical performance. TD Cowen increased their price target to $53, highlighting the company’s improved performance in the Do-It-For-Me segment and management’s progress toward fiscal year 2025 targets. RBC Capital Markets maintained a price target of $44 and a sector perform rating, noting the company’s positive first-quarter progress but calling for more evidence of sustained improvement. Lastly, JPMorgan raised their price target to $44, maintaining a neutral rating and acknowledging better-than-expected comparable store sales and expense efficiency, with management focusing on operational improvements and margin expansion.
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