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Investing.com - Guggenheim raised its price target on AutoZone (NYSE:AZO), a prominent $68.7 billion specialty retail player, to $4,600 from $4,100 on Wednesday, while maintaining a Buy rating following the auto parts retailer’s solid fourth-quarter 2025 operating results. According to InvestingPro data, analyst consensus remains strongly bullish with targets ranging from $2,900 to $4,925.
The firm cited AutoZone’s double-digit domestic commercial net sales growth, including near double-digit commercial comparable sales, approximately 25 basis points of FIFO gross margin expansion, and high-single digit FIFO EPS growth as evidence of strong performance. The company maintains a robust 52.6% gross profit margin and generated $148.80 in earnings per share over the last twelve months.
Guggenheim noted these results were particularly impressive given AutoZone’s ongoing strategic store and hub expansion plans, which include accelerated store openings and expanded hub and mega hub roll-outs.
The firm projects 50-60 hub openings in 2026, up significantly from 40 in 2025 and 19 in 2024, which it expects will drive sustained acceleration in domestic commercial sales growth.
Guggenheim also highlighted that average ticket trends are expected to climb to 6-8% over the next 6-9 months from below 4% currently, which should amplify AutoZone’s long-term growth potential.
In other recent news, AutoZone reported fourth-quarter earnings per share of $48.71, which fell short of the consensus estimate of $50.76. This shortfall was primarily attributed to tariff-induced LIFO charges amounting to approximately $80 million. Despite these charges, Jefferies raised its price target for AutoZone to $4,750, highlighting strong sales performance. Evercore ISI reiterated a $4,500 price target, noting a 4.8% increase in domestic comparable sales and a 5% rise in core global sales. Truist Securities also maintained a Buy rating, lowering its price target slightly to $4,499 due to non-cash LIFO charges impacting margins. Raymond James reduced its price target to $4,800, citing larger-than-expected LIFO charges but maintained a Strong Buy rating. Mizuho reiterated its Outperform rating with a $4,050 price target, acknowledging potential near-term earnings impacts from expected non-cash charges in fiscal year 2026. These developments reflect the varying analyst perspectives on AutoZone’s financial outlook amidst recent earnings challenges.
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