JPMorgan raises O’Reilly Automotive stock price target to $114 on sales growth

Published 27/07/2025, 07:38
JPMorgan raises O’Reilly Automotive stock price target to $114 on sales growth

Investing.com - JPMorgan has raised its price target on O’Reilly Automotive (NASDAQ:ORLY) to $114.00 from $113.00 while maintaining an Overweight rating on the stock. The automotive parts retailer, currently valued at $83 billion, maintains a strong Buy consensus among analysts, with InvestingPro data showing 14 analysts recently revising their earnings estimates upward.

The automotive parts retailer reported comparable sales growth of 4.1%, exceeding buy-side expectations and Census data that had projected growth in the 3% range, according to JPMorgan’s analysis released Friday.

Despite the strong sales performance, O’Reilly’s earnings per share fell slightly short of expectations as selling, general, and administrative (SG&A) expenses were higher than anticipated due to inflation in insurance and other costs.

The company has raised its full-year revenue guidance to 3-4.5% growth, reflecting strong first-half trends and current business performance.

O’Reilly also increased its SG&A forecast, now projecting per-store costs to rise approximately 3.5-4% on a non-GAAP basis, up from its previous projection of 2.5-3%, with the increase attributed to both cost inflation and the improved sales outlook.

In other recent news, O’Reilly Automotive reported second-quarter 2025 earnings with same-store sales growth of 4.1%, surpassing market expectations of 3.8%. This positive performance led BMO Capital to raise its price target for the company to $110, maintaining an Outperform rating. Similarly, TD Cowen increased its price target to $112, highlighting O’Reilly’s strong market position amid tariff challenges. RBC Capital also adjusted its price target to $104, despite higher-than-expected SG&A expenses, citing the company meeting headline expectations. Evercore ISI raised its target to $107, emphasizing O’Reilly’s strategic pricing and market share gains. DA Davidson reiterated its Buy rating with a $107 price target, noting the company’s consistent performance in beating comparable sales expectations. These developments reflect a generally optimistic outlook from analysts on O’Reilly Automotive’s future performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.