O’Reilly Automotive stock rating reiterated at Buy by Truist Securities

Investing.com - Truist Securities has reiterated its Buy rating on O’Reilly Automotive (NASDAQ:ORLY) with a price target of $109.00, citing strong third-quarter performance. According to InvestingPro data, analyst consensus remains bullish with targets ranging from $86 to $125, while the stock currently trades at a P/E ratio of 33.9x.

The auto parts retailer delivered robust quarterly results, primarily driven by approximately 14% growth in its Commercial sales segment. Same-SKU inflation increased to 4% during the quarter, contributing to the company’s overall performance. The company maintains a healthy gross profit margin of 51.4% and has achieved a 5.15% revenue growth over the last twelve months.

O’Reilly Automotive raised its sales guidance for the third time this year, now projecting 4%-5% growth with mid-single-digit same-SKU inflation expected in the fourth quarter. This adjustment reflects the company’s continued momentum despite challenging retail conditions.

Truist Securities noted that while DIY consumers in low and middle-income brackets continue to defer larger-ticket projects, these sales will likely materialize eventually as deferrals cannot continue indefinitely and high vehicle prices direct more consumer spending toward repair and maintenance activities.

The research firm expects O’Reilly’s SG&A expenses per store to moderate in calendar year 2026, positioning the company as "a bright spot in a wobbly retail sector" as it continues to execute alongside favorable industry trends.

In other recent news, O’Reilly Automotive reported its third-quarter 2025 earnings, exceeding Wall Street expectations. The company achieved earnings per share (EPS) of $0.85, surpassing the projected $0.83, while revenue reached $4.71 billion, outpacing the anticipated $4.69 billion. Despite these positive results, O’Reilly’s stock experienced a decline in after-hours trading. RBC Capital adjusted its price target for O’Reilly Automotive to $110 from $111, maintaining an Outperform rating. This adjustment was made following the third-quarter results, which were described as "largely in-line with expectations" by RBC. The firm noted that higher selling, general, and administrative expenses were balanced by market share gains. These developments reflect ongoing investor concerns regarding O’Reilly’s future growth prospects.

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