Wall Street analysts on Advance Auto Parts
According to the latest data compiled by Thomson Reuters, 56% of analysts covering Advance Auto Parts (AAP) gave it “buy” recommendations. Another 33% of these analysts recommended a “hold” on the company’s stock, and the remaining 11% of analysts gave a “sell” recommendation. As of August 15, 27 analysts were covering Advance Auto Parts. Interestingly, there weren’t any major changes in analysts’ recommendations despite AAP’s dismal 2Q17 report.
Target price and upside potential
According to the consensus data, AAP stock has the potential to reach $129.57 in the next 12 months. This 12-month price target reflected a significant upside potential of 48.8% from its market price of $87.08 as of August 15.
At the end of 2016, the analyst consensus suggested a much higher target price of $175.80. AAP’s stagnating sales and lower profitability could be the primary reason why analysts have revised down price targets for AAP stock in the last few months.
Investors should be aware of Wall Street analysts’ views, as they could have an impact on the company’s stock price. If popular analysts change their views, a significant short-term movement in the stock could follow.
Recommendation for peers
Analysts’ consensus “buy” recommendations for other auto part retailers and auto companies (XLY) with expected 12-month stock price targets are as follows:
- 41% of analysts gave AutoZone (AZO) a “buy” with about 28% upside potential.
- 58% of analysts gave O’Reilly Automotive (ORLY) a “buy” with about 16% upside potential in the next 12 months.
- About 24% of analysts gave Ford (F) a “buy” with about 13% upside potential.
Next, we’ll take a look at some key technical support and resistance levels in AAP stock.