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Investing.com - Raymond James upgraded O’Reilly Automotive (NASDAQ:ORLY) from Market Perform to Outperform on Wednesday, setting a price target of $105.00, representing a 12% upside from the current price of $93.83. This upgrade aligns with InvestingPro data showing 13 analysts have recently revised their earnings expectations upward for the upcoming period.
The upgrade is based on several factors, including visible near-term pricing tailwinds expected through the remainder of 2025 and early 2026, which should support comparable sales growth for the auto parts retailer.
Raymond James highlighted that the Do-It-For-Me (DIFM) segment continues to perform strongly, with third-quarter professional comps exceeding 10%, primarily driven by ticket count growth.
The firm also noted O’Reilly’s continued execution on parts availability and network expansion, including the Stafford, Virginia distribution center becoming operational in the fourth quarter and plans for 225-235 net new stores in 2026, including locations in Canada.
Despite some investor concerns about modest deferrals related to tariff-related pricing, Raymond James expressed confidence in O’Reilly’s long-term growth trajectory, citing the industry’s needs-based characteristics and the company’s strong balance sheet with approximately $820 million remaining under its share repurchase authorization.
In other recent news, O’Reilly Automotive reported its third-quarter earnings for 2025, surpassing Wall Street expectations. The company achieved earnings per share of $0.85, beating the forecast of $0.83, and recorded revenue of $4.71 billion, which also exceeded the projected $4.69 billion. Truist Securities has reiterated its Buy rating for O’Reilly Automotive, citing strong third-quarter performance, particularly a 14% growth in its Commercial sales segment. RBC Capital, while maintaining an Outperform rating, slightly adjusted its price target for the company to $110.00 from $111.00, noting that the results were largely in line with expectations. The adjustment was influenced by higher selling, general, and administrative expenses, which were balanced by gains in market share. Despite the positive earnings report, the stock experienced a decline, attributed to broader market dynamics and investor concerns regarding future growth. These developments highlight O’Reilly Automotive’s current position and recent performance in the market.
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