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Analysts’ Recommendations on AutoZone before Its Fiscal 1Q18 Results

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Recommendations on AutoZone stock

According to analysts’ latest consensus data by Reuters, 44% of analysts covering AutoZone (AZO) gave its stock “buy” recommendations. Another 52% recommended a “hold” while only one out of 27 analysts gave a “sell” recommendation.

Lower than peers’ upside potential

On November 27, analysts’ consensus target price for AutoZone stock was $648.82 in the next 12 months. It reflected an upside potential of ~1.7% from the market price of $637.95. About three months ago, analysts’ consensus target for AutoZone stock was $660.95.

Analysts’ expectations of Autozone’s continued weak-to-flat profitability could be the primary reason why many analysts are maintaining a neutral view of the company. However, AZO’s business model doesn’t require huge investments to drive growth, unlike auto manufacturers.

Recommendations for peers

Analysts’ consensus “buy” recommendations for other auto companies and auto parts sellers (XLY), with their expected 12-month upside potential figures, follow:

  • About 48% of the 27 analysts recommended a “buy” on Advance Auto Parts (AAP), with an impressive upside potential of ~20.1%.
  • About 62% of analysts gave O’Reilly Automotive (ORLY) a “buy,” with an ~8.1% upside potential.
  • Only 20% of analysts give Ford (F) stock a “buy,” with an ~4.9% upside potential.
  • About 40% of analysts give Fiat Chrysler (FCAU) a “buy,” with 23.6% upside potential.

Continue to the next part for a look at AutoZone’s valuation multiples ahead of its upcoming quarterly event.

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