O’Reilly Automotive stock price target lowered to $110 by RBC Capital

Investing.com - RBC Capital has lowered its price target on O’Reilly Automotive (NASDAQ:ORLY) to $110.00 from $111.00 while maintaining an Outperform rating on the stock. The auto parts retailer, currently valued at $83.29 billion, trades at a P/E ratio of 35.16, indicating a premium valuation according to InvestingPro data.

The adjustment follows O’Reilly’s third-quarter results, which RBC described as "largely in-line with expectations," noting that higher selling, general and administrative expenses were offset by market share gains. The company maintains strong financial metrics, with InvestingPro data showing a robust revenue growth of 5.15% and notably low price volatility with a beta of 0.6.

RBC’s fourth-quarter estimates remain largely unchanged, projecting comparable sales growth of 4.5% and earnings per share growth of 10% year-over-year to $0.70.

For longer-term projections, RBC has adopted a more conservative approach following management’s comments on elasticity, now modeling comparable sales growth of 4.6% for 2026 (down from 5.0% previously) and 4.0% for 2027 (unchanged).

The firm’s new price target is based on approximately 30 times its 2027 earnings per share estimate of $3.66, reduced from the previous multiple of 33 times.

In other recent news, O’Reilly Automotive reported its Q3 2025 earnings, surpassing Wall Street expectations. The company achieved earnings per share (EPS) of $0.85, slightly above the forecasted $0.83. Revenue also exceeded projections, totaling $4.71 billion compared to the anticipated $4.69 billion. These positive financial results highlight O’Reilly’s robust performance in the recent quarter. Despite the earnings beat, the company’s stock experienced a decline, reflecting broader market trends and investor concerns about future growth. There have been no recent reports of mergers or acquisitions involving O’Reilly Automotive. Additionally, no analyst upgrades or downgrades have been reported for the company at this time. Investors will continue to monitor O’Reilly’s performance in light of these recent developments.

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