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Investing.com - DA Davidson has reiterated its Buy rating and $115.00 price target on O’Reilly Automotive (NASDAQ:ORLY) following the company’s third-quarter 2025 earnings report. According to InvestingPro data, the company maintains a "GOOD" overall financial health score, with particularly strong profitability metrics, including a robust 51.4% gross profit margin.
The auto parts retailer beat consensus estimates for both revenue and earnings in the third quarter of 2025, marking its fourth consecutive quarter of comparable sales outperformance and second straight quarter of increased guidance. The company has demonstrated consistent growth, with revenue increasing by 5.15% over the last twelve months to $17.1 billion.
O’Reilly raised its full-year outlook, with the implied fourth-quarter 2025 guidance now bracketing analyst consensus expectations across most financial metrics, according to DA Davidson.
While expenses came in higher than DA Davidson had projected, the firm noted that O’Reilly achieved strong incremental margins of 23%, with the revenue outperformance exceeding the profit beat.
DA Davidson attributed the increased expenses to O’Reilly’s strategy of reinvesting sales upside to gain market share, an approach the firm believes "seems to be paying off" following weaker performance trends in 2024.
In other recent news, O’Reilly Automotive has seen a series of upward revisions in its stock price targets by various analyst firms. Mizuho increased its price target to $110, citing solid third-quarter comparable sales growth of 5.6%. UBS also raised its target to $120, highlighting the company’s consistent performance ahead of its upcoming third-quarter earnings report. TD Cowen set their price target at $125, noting O’Reilly’s leading position in the aftermarket sector and its potential for market share growth. RBC Capital adjusted their target to $111, reflecting a positive outlook on the auto parts retail sector amid expected tariff-led inflation. Truist Securities increased their price target to $109 following O’Reilly’s second-quarter results, which showed approximately 10% growth in Commercial sales. These recent developments underscore the positive sentiment among analysts regarding O’Reilly Automotive’s performance and prospects.
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