Street Calls of the Week
Investing.com - Evercore ISI has raised its price target on AutoZone (NYSE:AZO) to $4,500 from $4,250 while maintaining an Outperform rating ahead of the company’s fiscal fourth-quarter earnings report. The stock, currently trading at $4,232, has shown impressive momentum with a 32% gain year-to-date and is trading near its 52-week high of $4,388. According to InvestingPro data, analyst targets for the stock range from $2,900 to $4,925.
The auto parts retailer is scheduled to release its results on Tuesday, September 23, with Evercore expecting same-store sales to reaccelerate to 4.5%, driven by Do-It-For-Me (DIFM) initiatives and tariff-related price increases. With a market capitalization of $70.8 billion and a solid revenue growth of 5.15% over the last twelve months, AutoZone maintains its position as a prominent player in the specialty retail industry. InvestingPro subscribers can access 12 additional key insights about AutoZone’s financial health and market position.
Evercore notes that AutoZone is well-positioned to gain market share through 2026 as competitors restructure, specifically citing Advance Auto Parts’ 500 store closures announced in March as creating opportunities for AutoZone, particularly as the company expands its Mega Hub locations to improve part availability.
The research firm projects 200-300 basis points of acceleration from the previous quarter’s 1% inflation, supporting both comparable sales and gross margin rates, though it acknowledges potential risks of passing price increases to already pressured value-oriented consumers.
The new $4,500 price target represents 26.2x calendar 2026 earnings estimates and assumes AutoZone can reach the higher end of its historic relative trading range at 1.2x the market, which Evercore believes is justified by defensive reaccelerating growth, pricing power, and the industry’s rational behavior in a rising cost environment. Currently trading at a P/E ratio of 27.79x, InvestingPro analysis indicates the stock is trading above its Fair Value. Investors can access the comprehensive Pro Research Report, available for AutoZone and 1,400+ other US stocks, for detailed valuation analysis and expert insights.
In other recent news, AutoZone has seen several analysts adjust their price targets and ratings. Truist Securities raised its price target for AutoZone to $4,504, maintaining a Buy rating, attributing the upgrade to the company’s pricing actions in the fiscal fourth quarter. Raymond James also increased its price target to $4,900, keeping a Strong Buy rating, and highlighted factors such as foreign exchange and transaction trends affecting sales expectations. UBS set its new price target at $4,925, continuing with a Buy rating, and expressed optimism about the company’s investments in stores, fleet, and technology. Mizuho raised its target to $4,050, maintaining an Outperform rating, and noted adjusted earnings estimates following the fiscal third-quarter results, despite observing softer margin trends. These developments suggest analysts are optimistic about AutoZone’s performance and future prospects.
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