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Investing.com - Evercore ISI raised its price target on Genuine Parts (NYSE:GPC) to $145.00 from $135.00 on Wednesday, while maintaining an Outperform rating on the stock. The company, currently trading at $133.31 with a market cap of $18.5 billion, has shown strong momentum with an 8.78% gain over the past week. According to InvestingPro, GPC has maintained its position as a prominent player in the Distributors industry, with an impressive track record of raising dividends for 37 consecutive years.
The research firm believes GPC is "turning the corner on the organic growth and earnings power front," noting that the company’s 2025 guidance was less concerning than anticipated. With a healthy gross profit margin of 36.62% and projected earnings per share of $7.76 for fiscal year 2025, Evercore ISI points to cost reductions and 300 basis points of inflation pass-through that should improve profitability and turn earnings per share positive year-over-year during the second half.
Tariffs are driving pricing improvements and enhanced top-line performance, with both the North American NAPA Auto business (40% of sales) and Industrial (Motion) segments potentially seeing inflation acceleration to over 300 basis points in the third quarter, up from 100 basis points in the first half.
Restructuring efforts are gaining momentum, with cost-saving targets now exceeding $200 million run rate by year-end. The company is also shifting toward a 50/50 company-owned store mix over time, compared to 35% owned today.
Evercore ISI increased its 2026 EPS forecast by approximately 2% to reflect stronger margin initiatives and inflation pass-through, viewing GPC as "one of the few potential winners from tariffs" as it distributes need-based products to professional customers in both Auto and Industrial segments.
In other recent news, Genuine Parts Company reported its second-quarter 2025 earnings, surpassing expectations. The company achieved an adjusted earnings per share (EPS) of $2.10, slightly above the forecasted $2.07. Additionally, Genuine Parts reported revenue of $6.2 billion, exceeding the anticipated $6.11 billion. These results highlight the company’s strong financial performance in the recent quarter. The earnings announcement has attracted attention from investors and analysts alike. Genuine Parts’ positive earnings results come amid a competitive market environment. Analysts have taken note of the company’s ability to exceed financial projections. These developments are crucial for investors considering Genuine Parts as a potential investment.
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