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Investing.com - TD Cowen raised its price target on O’Reilly Automotive (NASDAQ:ORLY) to $125.00 from $112.00 on Monday, while maintaining a Buy rating on the automotive parts retailer. The stock, currently trading near its 52-week high with a market capitalization of $90.78 billion, has delivered impressive returns of over 43% in the past year. According to InvestingPro, 14 analysts have recently revised their earnings expectations upward for the upcoming period.
The firm cited O’Reilly’s leading position within the aftermarket sector and its potential for accelerated market share growth, especially during turbulent industry conditions. TD Cowen noted that O’Reilly’s differentiated supply chain network continues to improve, driving best-in-class parts coverage and delivery capabilities. The company maintains a robust gross profit margin of 51.4%, demonstrating operational efficiency. Get deeper insights into O’Reilly’s financial health and 15+ additional exclusive ProTips with InvestingPro.
The analyst highlighted that while the consumer remains generally healthy, management is cautious about the second half of the year. Same-SKU inflation has further room to run but may face some elasticity challenges, according to the research note.
TD Cowen believes wholesale distributors hold approximately 50% market share in the Do-It-For-Me (DIFM) segment, with the professional industry continuing to bifurcate between strong operators that grow organically and through acquisitions versus a weaker cohort becoming less relevant.
The new price target represents a multiple of 38 times TD Cowen’s fiscal year 2026 earnings per share estimate of $3.30 for O’Reilly Automotive.
In other recent news, O’Reilly Automotive has seen a series of positive developments regarding its stock price targets from multiple analyst firms. RBC Capital raised its price target to $111, maintaining an Outperform rating, citing a positive outlook on the auto parts retail sector amidst expected tariff-led inflation. Truist Securities increased its target to $109, following O’Reilly’s second-quarter results, which showed approximately 10% growth in Commercial sales. JPMorgan also raised its target to $114, noting a 4.1% growth in comparable sales, surpassing both buy-side expectations and Census data projections.
BMO Capital increased its price target to $110, highlighting O’Reilly’s second-quarter earnings report that showed same-store sales growth of 4.1%, exceeding market expectations. Meanwhile, TD Cowen raised its target to $112, expressing confidence in O’Reilly’s market share opportunities and its ability to navigate tariff challenges. These upgrades reflect a consistent and positive sentiment among analysts regarding O’Reilly Automotive’s recent performance and market positioning.
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