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Analysts’ Recommendations on AAP Stock after Its 3Q17 Results

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Nov. 20 2017, Updated 10:32 a.m. ET

How analysts view Advance Auto Parts

According to the latest data compiled by Thomson Reuters, 48% of analysts covering Advance Auto Parts (AAP) gave it “buy” recommendations. Another 41% of these analysts recommended a “hold” on AAP stock, and 11% of these analysts gave “sell” recommendations.

On November 15, 27 analysts were covering Advance Auto Parts. Interestingly, no major changes were seen in analysts’ recommendations despite a subdued fiscal 3Q17 report on AAP stock.

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Upside potential for next 12 months

According to the consensus data, AAP stock has a potential to reach $107.58 in the next 12 months. This 12-month price target reflected a significant upside potential of 17.5% from its market price of $91.58 on November 15.

In August 2017, these analysts’ consensus suggested a much higher target price of $129.00 for AAP stock. The company’s subdued sales and declining profit margins could be among the key reasons for analysts to give downward revised price targets for AAP stock.

Peer recommendations

Analysts’ consensus “buy” recommendations for other auto parts sellers and auto manufacturers (XLY) with expected 12-month stock price targets follow:

  • About 44.0% of analysts gave AutoZone (AZO) a “buy” with ~6% upside potential.
  • About 62.0% of analysts gave O’Reilly Automotive (ORLY) a “buy” with ~8% upside potential in the next 12 months.
  • Only 17% of analysts gave Ford (F) a “buy” with ~6% upside potential.

In the final part of this series, we’ll take a look at some key technical support and resistance levels in AAP stock.

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