Analysts’ Ratings on Auto Parts Companies in October 2017



Auto parts retailers: October update

According to the recent data by Reuters, about 62%, 44%, and 48% of analysts have given “buy” recommendations on O’Reilly Automotive (ORLY), AutoZone (AZO), and Advance Auto Parts (AAP), respectively. 38% and 52% of analysts recommend a “hold” on O’Reilly’s and AutoZone’s stocks, respectively, while only 41% recommended a “hold” for AAP.

None of the analysts covering ORLY gave it a “sell” recommendation, while 4% and 11% of analysts recommended a “sell” for AZO and AAP, respectively.

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Comparing 12-month upside potential

As of October 11, auto parts companies’ 12-month stock price targets and upside potential were as follows:

  • O’Reilly Automotive: Wall Street analysts’ consensus target price of $229 reflected a return potential of ~9.9% from its market price of $42.
  • AutoZone: The stock was trading at $588.56, and analysts gave a target of $641.23, which reflected an upside potential of ~9%.
  • Advance Auto Parts: Analysts gave the stock a price target of $107.29, which reflected a return potential of about 20% from its market price of $89.4.

Despite the recent dismal performance, analysts’ targets for these auto part retailers are more optimistic as compared to automakers (XLY) including General Motors (GM) and Ford (F).

Auto industry’s 3Q17 earnings season

The auto industry’s third-quarter earnings season will begin with Harley-Davidson’s earnings event on October 17. Mainstream US automakers General Motors (GM) and Ford Motor (F) are set to release their 3Q results on October 24 and October 26, respectively. The Italian American automaker Fiat Chrysler (FCAU) is expected to announce its third-quarter results on November 2.

Visit Market Realist’s Autos page to stay updated on analysts’ estimates for auto companies’ 3Q17 earnings.


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