Robinhood shares gain on Q2 beat, as user and crypto growth accelerate
Investing.com - Mizuho (NYSE:MFG) has reiterated an Outperform rating on O’Reilly Automotive (NASDAQ:ORLY) with a price target of $96.33. According to InvestingPro data, the stock is trading near its 52-week high of $97.22, with a P/E ratio of 34.8x, suggesting rich valuation levels.
The auto parts retailer delivered second-quarter earnings consistent with expectations, with modest sales and margin upside offset by higher-than-expected operating expenses. SG&A growth per store reached approximately 4.5%, exceeding the company’s guidance range of 2.5-3.0%.
Mizuho estimates these higher-than-planned expenses reduced earnings per share by about $0.02 during the quarter. The firm’s analysis suggests O’Reilly remains one of the best share gainers and pricing beneficiaries in its sector, despite management working through unexpected cost increases.
Looking forward, O’Reilly has updated its fiscal year 2025 guidance, raising its comparable sales midpoint by 75 basis points while maintaining its EBIT margin outlook. The company also widened its EPS guidance with a midpoint increase of approximately 1%.
Mizuho expects tariff-related inflation to benefit O’Reilly’s comparable sales performance in the second half of the year, with updated guidance suggesting potential comparable sales growth above 5%.
In other recent news, O’Reilly Automotive has been the focus of several analyst evaluations following its recent 15-for-1 stock split. CFRA adjusted its price target to $100.00, maintaining a Buy rating, indicating that the split, rather than any change in the company’s fundamentals, prompted the adjustment. Similarly, DA Davidson lowered its price target to $107.00 while keeping a Buy rating, aligning with the stock split. Evercore ISI reiterated an Outperform rating with a $97.00 price target ahead of O’Reilly’s upcoming second-quarter earnings report. RBC Capital also maintained an Outperform rating, projecting second-quarter comparable sales growth slightly above consensus estimates, with earnings per share in line with expectations. Meanwhile, Mizuho Securities increased its price target to $1,445.00, highlighting consistent demand trends in the professional segment despite mixed first-quarter results. These developments underscore a variety of analyst perspectives on O’Reilly Automotive’s performance and future outlook.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.