Nucor earnings beat by $0.08, revenue fell short of estimates
DA Davidson lowered its price target on O’Reilly Automotive (NASDAQ:ORLY) stock to $107.00 from $1,450.00 on Wednesday, while maintaining a Buy rating on the auto parts retailer. According to InvestingPro data, the company currently trades at a P/E ratio of 32.3 and has delivered a strong 26% return over the past year.
The price target adjustment reflects O’Reilly’s 15-to-1 stock split that became effective early last week, according to the research firm.
DA Davidson emphasized that no other changes were made to its financial assumptions for the company in its updated model.
The firm reiterated its Buy rating on O’Reilly Automotive shares, noting that the new price target simply accounts for the mathematical adjustment following the split.
O’Reilly Automotive, which operates more than 5,900 stores across the United States, completed the stock split to make its shares more accessible to a broader range of investors.
In other recent news, O’Reilly Automotive reported its first-quarter 2025 earnings, revealing a miss on both earnings per share (EPS) and revenue forecasts. The company’s EPS came in at $9.35, below the expected $9.87, while revenue reached $4.14 billion, falling short of the $4.18 billion forecast. Despite these results, O’Reilly maintained its full-year revenue guidance between $17.4 billion and $17.7 billion and slightly raised its earnings per share guidance by approximately 1%. Truist Securities responded by raising O’Reilly’s stock price target to $1,539, maintaining a Buy rating, citing a modest beat on comparable store sales. Similarly, Mizuho (NYSE:MFG) Securities increased the price target to $1,445, maintaining an Outperform rating, following the company’s first-quarter financial results. Analysts from Truist and Mizuho noted the potential for O’Reilly to benefit from ongoing market dynamics, including tariff impacts and increased consumer focus on maintenance and repair activities. O’Reilly also announced plans for a 15-for-1 stock split, aimed at enhancing employee retention and addressing wage pressures.
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