O’Reilly Automotive stock price target raised to $104 by RBC on growth outlook

Investing.com - RBC Capital has raised its price target on O’Reilly Automotive (NASDAQ:ORLY) to $104.00 from $98.00 while maintaining an Outperform rating on the stock. The move aligns with strong analyst sentiment, as InvestingPro data shows 14 analysts have recently revised their earnings estimates upward, with the stock trading near its 52-week high of $100.1.

The price target increase follows O’Reilly’s second-quarter results, which met headline expectations despite higher-than-anticipated selling, general, and administrative expenses (SG&A).

RBC is taking a more conservative approach on costs for the remainder of the year, which it believes improves the company’s setup heading into 2026 with expected comp acceleration driven by tariff-led inflation and moderating SG&A growth.

For the third quarter, RBC now models comparable sales growth of 5.2%, up from its previous estimate of 3.6%, and adjusted earnings per share of $0.82, slightly higher than its prior forecast of $0.81.

The new price target is based on approximately 32 times RBC’s revised 2026 adjusted earnings per share estimate of $3.35, with the firm noting that "multiple upside is justified by an improved EPS growth outlook."

In other recent news, O’Reilly Automotive reported its Q2 2025 earnings, meeting analyst expectations with an earnings per share of $0.78 and revenue of $4.53 billion. The company has shown steady performance, contributing to positive sentiment among investors. In addition, UBS raised its price target for O’Reilly Automotive to $115, maintaining a Buy rating, citing the company’s 4.1% growth in comparable sales as evidence of market share gains in the automotive aftermarket sector. Evercore ISI also increased its price target to $107, highlighting O’Reilly’s strong execution and margin expansion amid the current tariff environment. DA Davidson reiterated its Buy rating with a price target of $107, noting the company’s positive momentum in beating comparable sales expectations for three consecutive quarters. These recent developments underscore a period of strategic growth and investor confidence in O’Reilly Automotive.

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