AutoZone’s 1Q18 Results Didn't Boost Investors’ Confidence

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Part 7
AutoZone’s 1Q18 Results Didn't Boost Investors’ Confidence PART 7 OF 7

AutoZone: Analysts’ Recommendations and Target Price

 Analysts’ recommendations

According to data compiled by Reuters, 44% of the analysts covering AutoZone stock (AZO) gave it a “buy” recommendation, 52% of the analysts gave it a “hold” recommendation, and 4% gave it a “sell” recommendation. As of December 5, 27 Wall Street analysts were covering AutoZone.

AutoZone: Analysts&#8217; Recommendations and Target Price

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Upside potential and target price

Analysts’ target price consensus data suggest that AutoZone stock could reach $703.27 in the next 12 months. The consensus target reflected no upside potential. Its market price was already higher at $712.76 as of December 5. Interestingly, analysts’ consensus target price for AutoZone stock has risen significantly in the last three months from $650 to $703.

However, analysts’ consensus for AutoZone stock had a much higher target price of $871 at the end of 2016. Stagnation in AutoZone’s profitability in recent quarters could be the primary reason for analysts’ cautious approach.

Peer comparison

In comparison, analysts’ “buy” recommendations for other auto parts sellers and auto manufacturers (IYK), with their respective 12-month upside potential, were as follows:

  • About 48% of the analysts gave Advance Auto Parts (AAP) a “buy” with ~6.7% upside potential.
  • 62% of the analysts gave O’Reilly Automotive (ORLY) a “buy.” However, its target price was already ~6% lower than its market price.
  • Only 20% of the analysts gave Ford Motor (F) a “buy” with ~2.2% upside potential.

Please visit Market Realist’s Autos page for the auto industry’s latest updates and earnings.


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