September looms as a risk month for stocks, Yardeni says
Investing.com - Truist Securities has maintained its Buy rating on Genuine Parts (NYSE:GPC) with a price target of $143.00, which aligns closely with InvestingPro’s Fair Value calculation. The stock currently trades at $139.13, near its 52-week high of $144.44.
The research firm described GPC as a "coiled spring," noting that its Industrial business has significant earnings leverage and is positioned to benefit when the industrial cycle turns. As a prominent player in the Distributors industry with a market cap of $19.35 billion, Truist pointed out that close competitors are currently commanding significant multiple premiums compared to GPC, which maintains a P/E ratio of 23.9x.
The firm also highlighted potential improvements in the NAPA auto segment, which is enhancing operations and slowing previous share losses. Truist indicated this segment could potentially benefit from tariff-driven same SKU inflation.
While Truist acknowledged continuing risks, particularly from lower inventory purchases by independent NAPA dealers, it emphasized that GPC remains reasonably valued at approximately 18x 2025 estimated EPS and 16x 2026 estimated EPS.
The research firm maintained its positive outlook, suggesting that if the company continues to execute effectively as these cycles turn, it "should have significant upside for patient investors."
In other recent news, Genuine Parts Company reported its second-quarter 2025 earnings, which surpassed expectations with an adjusted earnings per share (EPS) of $2.10, slightly above the forecasted $2.07. The company also reported revenue of $6.2 billion, exceeding the anticipated $6.11 billion. Additionally, Genuine Parts announced a regular quarterly cash dividend of $1.03 per share, payable on October 2, 2025, to shareholders of record as of September 5, 2025. In a separate development, Evercore ISI raised its price target on Genuine Parts to $145 from $135, maintaining an Outperform rating on the stock. The research firm noted that the company’s 2025 guidance was less concerning than anticipated, citing cost reductions and inflation pass-through as factors that should improve profitability. These recent developments reflect ongoing adjustments and strategic decisions by Genuine Parts to enhance its financial performance.
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