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Investing.com - Evercore ISI raised its price target on O’Reilly Automotive (NASDAQ:ORLY) to $107.00 from $97.00 on Friday, while maintaining an Outperform rating on the auto parts retailer. The stock, currently trading at $98.16, is approaching its 52-week high of $100.10, with analyst targets ranging from $62 to $120. According to InvestingPro data, 8 analysts have recently revised their earnings estimates upward for the upcoming period.
The firm cited O’Reilly’s ability to play offense amid the current tariff environment through market share gains, strong execution, and margin expansion. The company maintains a robust gross profit margin of 51.4% and a healthy return on assets of 16.04%. Evercore believes the company’s strategy of passing through an estimated additional 200-300 basis points of pricing should accelerate comparable sales by 100-200 basis points in the second half of 2025.
O’Reilly’s second-quarter results showed a recovery to its long-term historic comparable sales average of over 4%, despite what Evercore described as a lackluster consumer backdrop. The company achieved revenue growth of 5.15% over the last twelve months, while the firm noted that normal inflation of 1.5% helped boost results compared to the previous sub-1% trend. For deeper insights into O’Reilly’s financial health and growth prospects, InvestingPro subscribers can access comprehensive analysis and additional expert tips.
Evercore highlighted that O’Reilly is benefiting from a macro overlay of tariffs, estimated at approximately 15% effective incremental, which uniquely supports needs-based professional auto parts distributors. The firm pointed to the 290 million vehicles on U.S. roads that need maintenance, positioning O’Reilly as the "#1 winner" in the space.
The research firm increased its earnings per share estimates by 5 cents for both this year and next, with EPS projections now at $3.00 and $3.35 respectively, accounting for potential flow-through benefits from tariffs that began taking effect in the second quarter.
In other recent news, O’Reilly Automotive has reported its Q2 2025 earnings, meeting analyst expectations with an earnings per share (EPS) of $0.78 and revenue totaling $4.53 billion. This steady performance highlights the company’s consistent financial health. Additionally, UBS has raised its price target for O’Reilly Automotive to $115, up from $105, while maintaining a Buy rating. This adjustment follows a 4.1% growth in comparable sales during the second quarter, which UBS interprets as a sign of the company gaining market share in the automotive aftermarket sector.
DA Davidson has also reiterated its Buy rating for O’Reilly Automotive, setting a price target of $107. The retailer has shown positive momentum by beating comparable sales expectations for three consecutive quarters. These developments reflect O’Reilly Automotive’s robust sales performance and strategic expansions, contributing to continued investor interest.
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