Interactive Brokers shares jump as it secures spot in S&P 500
Investing.com - Mizuho (NYSE:MFG) raised its price target on AutoZone (NYSE:AZO), a prominent specialty retail player with a market capitalization of $61.6 billion, to $4,050 from $3,740 while maintaining an Outperform rating on Thursday. According to InvestingPro data, the company currently trades at $3,685, with analysts’ targets ranging from $2,896 to $4,850.
The research firm adjusted its earnings estimates for the auto parts retailer following AutoZone’s fiscal third-quarter results and what it described as "somewhat softer margin trends."
Mizuho revised its fiscal year 2025 earnings per share estimate downward to $146.59 from $151.52 previously, while also cutting its fiscal 2026 earnings estimate to $165.50 from $174.00.
The firm introduced a new fiscal 2027 earnings estimate of $184.35 for AutoZone, with the updated price target based on a multiple of 22 times this projection.
Mizuho justified the higher valuation multiple compared to its previous model by citing "a better top-line outlook, particularly within the steadier commercial business" for the auto parts retailer.
In other recent news, AutoZone has been the subject of several analyst updates and strategic developments. TD Cowen reiterated its Buy rating with a $4,300 price target, highlighting AutoZone’s ability to manage challenges related to tariffs and its strategic investments, which are expected to normalize margins in the coming quarters. UBS also maintained a Buy rating, raising its price target to $4,260, citing the company’s strategic investments and market share gains as factors likely to accelerate earnings growth. Guggenheim joined in by increasing its price target to $4,100, pointing out AutoZone’s accelerating domestic sales and strategic expansions as indicators of future growth.
In addition to these analyst updates, AutoZone announced the appointment of Constantino Spas Montesinos from FEMSA to its Board of Directors, expanding the board to 11 members. Montesinos’ international experience is anticipated to enhance the board’s strategic planning capabilities. These developments reflect AutoZone’s ongoing efforts to strengthen its market position and drive growth through strategic investments and leadership enhancements.
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